Saturday, July 11, 2020
Hawai'i Free Press

Current Articles | Archives

Thursday, September 23, 2010
New York, Hawaii Top Earners Face Highest Tax Under Obama Plan, Study Says
By Selected News Articles @ 2:32 PM :: 6965 Views :: Energy, Environment, National News, Ethics

by Ryan J. Donmoyer – Bloomberg.com Sep 22, 2010

    High-income residents of New York City and President Barack Obama’s home state of Hawaii would have the highest marginal tax rates in the U.S. if Congress adopts the president’s proposal to increase taxes for top earners, a study found.

    The Tax Foundation, a Washington research group that advocates for lower taxes, said state, local and federal levies would result in a top 50.8 percent rate on high-income New York City residents. Affluent Hawaiians would pay 49.7 percent. Residents of California, Vermont, Maryland and New York round out the five states with the heaviest burdens, with top federal- state rates of 49.4 percent, 48.8 percent, 48.6 percent and 48.4 percent, respectively.

    “High-income taxpayers, along with second earners, tend to be the most sensitive to higher marginal taxes,” said Gerald Prante, the Tax Foundation economist who prepared the report. “And as they keep getting higher and higher, the marginal cost grows even faster.”

    Lower tax rates on income and investments enacted in 2001 and 2003 expire Dec. 31. Obama and most Democrats want to retain those that target individuals earning less than $200,000 and married couples earning under $250,000 and allow policies that benefited those with higher incomes to expire. Republicans generally back extending all of the tax cuts. (To see an interactive chart of the tax debate, click here.)

    Deductions, Exemptions

    Obama’s proposal would allow the top marginal tax rates of 33 percent and 35 percent to revert to 36 percent and 39.6 percent next year. Phase-outs for deductions and exemptions would also be reinstated, pushing the rate higher. Tax rates on dividends and capital gains would increase to 20 percent from 15 percent.

    Under current law, the top federal tax rate applies only to taxable income that exceeds about $375,000; amounts below that are taxed at lower rates. Taxable income is equal to gross income minus deductions, so most taxpayers wouldn’t begin paying at top rates until they gross more than about $400,000.

    The top marginal rates also don’t reflect the overall tax the highest earners pay, especially when most of the income comes from capital gains or dividends.

    The 400 highest-earning U.S. households reported an average of $345 million of income in 2007, while their average tax rate fell to 16.6 percent, the lowest in almost 20 years.

    $532 Tax Bill

    Almost three-quarters of the highest earners’ income was in capital gains and dividends taxed at a 15 percent rate set as part of tax cuts backed by President George W. Bush in 2003, Internal Revenue Service statistics show. Of the 400 earners, 289 paid a total effective federal tax rate of 20 percent or less in 2007, the last year for which figures were available, the data show.

    Separately, IRS data shows 80 percent of those facing higher taxes under Obama earn between $200,000 and $500,000. An analysis by the congressional Joint Committee on Taxation in August concluded their taxes would increase on average by $532 a year.

    The marginal tax rate rankings of states would be little changed if Republicans prevail and all tax cuts are extended, the Tax Foundation found. In that case, the top marginal rate in New York City would be 45.3 percent; Hawaii, 44.3 percent; California, 44.1 percent; Vermont, 43.3 percent; Maryland, 43.1 percent; New Jersey and New York, 43 percent.

    Other states at the top under one or both scenarios include Maine, Minnesota, Idaho, North Carolina and Ohio.

    ---30---

     

    STUDY: http://www.taxfoundation.org/publications/show/26729.html

    Links

    TEXT "follow HawaiiFreePress" to 40404

    Register to Vote

    2aHawaii

    808 Silent Majority

    808 State Update AM940

    ABCDEFG Blog

    ACA Signups Hawaii

    ACCE

    ALEC

    Alliance Defending Freedom

    Aloha Life Advocates

    Aloha Pregnancy Care Center

    American Council of Trustees and Alumni

    American Mothers of Hawaii

    AMVETS-Hawaii

    AntiPlanner

    Antonio Gramsci Reading List

    A Place for Women in Waipio

    Astronomy Hawaii

    Audit The Rail

    Ballotpedia Hawaii

    Better Hawaii 

    Blaisdell Memorial Project

    Broken Trust 

    Build More Hawaiian Homes Working Group

    CAFR Hawaii

    Castaway Conservative

    Children's Alliance Hawaii

    Children's Rights Institute

    ChinaTownWatch.com

    Christian Homeschoolers of Hawaii

    Citizens for Recall

    Cliff Slater's Second Opinion

    Coffee Break

    CSIS Pacific Forum

    DAR Hawaii

    DeedySupport.com

    DVids Hawaii

    E Hana Kakou Kelii Akina

    E Māua Ola i Moku o Keawe

    Farmers For Choice Hawaii

    FIRE

    Fix Oahu!

    Follow the Money Hawaii

    Frank in Hawaii

    Front Page Magazine

    Frontline: The Fixers

    Genetic Literacy Project

    Get Off Your Butts!

    God, Freedom, America

    Grassroot Institute

    Habele.org

    Hawaii Aganst Assisted Suicide

    Hawaii Aquarium Fish Report

    Hawaii Aviation Preservation Society

    Hawaii Catholic TV

    Hawaii Christian Coalition

    Hawaii Cigar Association

    Hawaii Coalition Against Legalized Gambling

    Hawaii ConCon Info

    Hawaii Credit Union Watch

    Hawaii Crime Victims' Rights

    Hawaii Crop Improvement Association

    Hawaii Debt Clock

    Hawaii Defending Marriage

    Hawaii Defense Foundation

    Hawaii Family Advocates

    Hawaii Family Forum

    Hawaii Farmers and Ranchers United

    Hawaii Farmer's Daughter

    Hawaii Federalist Society

    Hawaii Federation of Republican Women

    Hawaii Firearm Community

    Hawaii Fishermen's Alliance

    Hawaii Future Project

    Hawaii Gathering of Eagles

    Hawaii History Blog

    Hawaii Homeschool Association

    Hawaii Jihadi Trial

    Hawaii March for Life

    Hawaii Meth Project

    Hawaii's Partnership for Appropriate & Compassionate Care

    Hawaii Public Charter School Network

    Hawaii Rifle Association

    Hawaii Right to Life -- Big Island

    Hawaii Right to Life -- Oahu

    Hawaii Shield Law Coalition

    Hawaii Shippers Council

    Hawaii Smokers Alliance

    Hawaii State Data Lab

    Hawaii Together

    Heritage Foundation

    HI Coalition Against Legalized Gambling

    HIEC.Coop 

    HiFiCo

    Hiram Fong Papers

    Homeschool Legal Defense Hawaii

    Honolulu Homeless Crisis

    Honolulu Navy League

    Honolulu Traffic

    Horns of Jericho Blog

    House Minority Blog

    House Republican Caucus YouTube

    HPACC

    Hump Day Report

    I Vote Hawaii

    If Hawaii News

    Imua TMT

    Inouye-Kwock, NYT 1992

    Inside the Nature Conservancy

    Inverse Condemnation

    Investigative Project on Terrorism

    Iowa Meets Maui

    Jackson v Abercrombie

    Jihad Watch

    July 4 in Hawaii

    Kahle v New Hope

    Kakaako Cares

    Kau TEA Party

    Kauai Co GOP

    Keep Hawaii's Heroes

    KeyWiki

    Land and Power in Hawaii

    Legislative Committee Analysis Tool

    Lessons in Firearm Education

    Lingle Years

    Malulani Foundation

    Managed Care Matters -- Hawaii

    Malama Pregnancy Center of Maui

    Mauna Kea Recreational Users Group

    MentalIllnessPolicy.org

    Middle East Forum--The Legal Project

    Mililani Conservatives for Change

    Military Home Educators' Network Oahu

    Missile Defense Advocacy

    MIS Veterans Hawaii

    Muslim Brotherhood in America

    NAMI Hawaii

    NARTH

    Natatorium.org

    National Christian Foundation Hawaii

    National Parents Org Hawaii

    National Wind Watch

    New Hawaiian

    New Zeal

    NFIB Hawaii News

    No GMO Means No Aloha

    Northwest Economic Policy Seminar

    Not Dead Yet, Hawaii

    Now What I Really Think

    NRA-ILA Hawaii

    Oahu Alternative Transport

    ObamaCare Abortion Hawaii

    Obookiah

    OHA Lies

    Opt Out Today

    OurFutureHawaii.com

    Pacific Aviation Museum

    Patients Rights Council Hawaii

    PEACE Hawaii

    People vs Machine

    Pritchett Cartoons 

    Pro-GMO Hawaii

    P.U.E.O.

    RailRipoff.com

    Rental by Owner Awareness Assn

    Republican Party -- Hawaii State

    Research Institute for Hawaii USA

    Rick Hamada Show

    RJ Rummel

    Robotics Organizing Committee

    Save Dillingham Airfield

    School Choice in Hawaii

    SenatorFong.com

    SIFE Remington

    SIFE W. Oahu 

    Sink the Jones Act

    Smart About Marijuana--Hawaii

    St Marianne Cope

    State Budget Solutions Hawaii

    State Policy Network

    Statehood for Guam

    Tax Foundation of Hawaii

    The Harriet Tubman Agenda

    The Long War Journal

    The Real Hanabusa

    Time Out Honolulu

    Trustee Akina KWO Columns

    Truth About Trade & Technology - Hawaii

    UCC Truths

    Union Members Know Your Rights

    US Tax Foundation Hawaii Info

    Valor in the Pacific

    VAREP Honolulu

    Waagey.org

    West Maui Taxpayers Association

    What Natalie Thinks

    Whole Life Hawaii

    Yes2TMT