Economics, Pethokoukis

A reminder of where taxes are headed in 2013

Higher. A lot higher. Especially if you live in California, Hawaii, and NYC. (H/t to Tyler Cowen).

Top Marginal Effective Tax Rates by State and by Source of Income, 2012 Tax Law vs. 2013 Scheduled Tax Law – Gerald T. Prante, Lynchburg College, School of Business and Economics, and Austin John, Lynchburg College, School of Business and Economics:

This paper compares state-by-state estimates of the top marginal effective tax rates (METRs) on wages, interest, dividends, capital gains, and business income for tax year 2012 to the rates scheduled for 2013 under scheduled law. Scheduled tax law for 2013 assumes the expiration of the 2001 and 2003 tax cuts and the new PPACA taxes. Overall, the average top METR on wage income is scheduled to increase by approximately six percentage points (41.8 percent to 47.8 perent), while taxes on dividends would increase the greatest (19.0 percent to 47.9 percent). The top METRs on wages, dividends, interest, and partnership/sole proprietor income would exceed 50 percent in California, Hawaii, and New York City.

One thought on “A reminder of where taxes are headed in 2013

  1. Don’t forget MN. We have a liberal progressive Governor, House & Senate as on January 2013. They have every intention to increase state income taxes. The only question is if we will be #1, #2 or #3 in the country. Dad but very true…

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