Friday, December 7, 2012

50% Tax Rates Coming for California and New York

A new study out from economists at Lynchburg College calculates the effective top marginal tax rates on various forms of income. While most of the media focuses on the federal top marginal income tax rate, Professors Gerald Prante and Austin John have factored in all of the taxes both nationwide and in each individual state and found that the average rate across the country will approach 50% - surpassing it in three different states.
Nationwide, the average top marginal rate will rise from 41.8% to 47.8%. In New York, California and Hawaii, the top marginal income tax rate on high income-earners will be in excess of 50%. Investment taxes would rise astronomically. The average nationwide dividends tax rate will soar from 19% to 47.9%, exceeding 50% in seven states. Capital gains tax rates will also rise to over 30% in nine different states.

Read more: http://townhall.com/tipsheet/kevinglass/2012/12/06/study_50_tax_rates_coming_for_california_and_new_york

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