Some tax experts crunched the numbers on Biden’s plan and found that those earning more than $400,000 in California, New Jersey and New York City could face combined state and local statutory income tax rates of more than 60%.
In California, top earners (those making more than $400,000) could face a state and federal tax rate of as much as 62.6% under the Biden plan, according to calculations from Jared Walczak of the Tax Foundation. In New Jersey, the combined rates could be just more than 60%, while in New York state they could reach 58.2%. In New York City, home to most of the state’s high earners, the combined city, state and federal income tax rate would be just over 62%...
Under Biden’s plan, the effective tax rate for the top 1% would increase from 26.8% to 39.8%, according to the Tax Policy Center. That means top earners in California and New York City would pay effective state and federal tax rates of around 53% — compared with the roughly 40% they pay in effective rates today.