In her state of the city address, City Council Speaker Christine Quinn just proposed a 15 to 26 percent hike in the city’s income-tax rate for mid-six-figure earners and above. Together with a proposed state tax hike, the idea would bring New York City’s top rate to nearly 14.95 percent, two-thirds higher than the top rate in New Jersey!
Quinn proposes a new tax rate of 4.25 percent on households earning between $297,000 and $532,000, a 4.45 percent rate for households earning up to $1.2 million, and a 4.65 percent rate on incomes above that level.
The current rate for all of these earners is 3.68 percent.
In her reasoning, Quinn said that “it’s almost impossible not to notice how unfair the current tax system is,” and that “we have to make New York City less dependent on Wall Street” after snoozing through a “Wall Street-induced” budget “slumber” over the past decade or so.
Of course, Wall Street has already conveniently made the city less dependent on it, by disappearing. You can’t be dependent on a ghost. But Quinn seems to want to try, by taxing people whose incomes from salaries, bonuses, and capital gains have now vanished.
And a punitive, record-high tax rate will discourage new rich people who didn’t work on Wall Street from coming to New York to replace the old.