NCPA - National Center for Policy Analysis

DEMOCRAT HEALTH CARE REFORM: A POISON PILL IN NY

July 17, 2009

Congressional plans to fund a massive health care overhaul could have a job-killing effect on New York, creating a tax rate of nearly 60 percent for the state's top earners and possibly pressuring small-business owners to shed workers, says the New York Post.

New York's top income bracket could reach as high as 57 percent -- rates not seen in three decades -- to pay for the massive health coverage proposed by House Democrats this week.

According to Gary Milkwick of the Tax Club, a New York City tax and accounting firm, a single Wall Streeter earning $285,000 would pay:

  • $79,191 in federal income taxes.
  • $19,976 in New York State taxes.
  • $10,279 in New York City taxes.
  • $2,850 towards the new health care tax hike of one percent.
  • $2,958 in Medicare taxes.
  • Bringing the total tax bill to $115,254, or 40.44 percent of total income.

A small business owner with $500,000 payroll, ten employees and no health care plan would:

  • Pay $40,000 towards the "no health care" tax penalty.
  • Lay off one employee making $50,000 to make up for the new tax.

A worker with no health insurance making $80,000-a-year would pay:

  • $16,187 in federal income taxes.
  • $5,083 in New York State taxes.
  • $2,800 in New York City taxes.
  • $2,320 in Medicare taxes.
  • $2,000 towards the new 2.5 percent "no health care" tax penalty.
  • Bringing the total tax bill to $28,391, or 35.48 percent of total income.

A married couple with combined income of $1.5 million would pay:

  • $455,153 in federal income taxes.
  • $125,156 in New York State taxes.
  • $54,508 in New York City taxes.
  • $81,000 towards the new health care tax hike of 5.4 percent.
  • $2,958 in Medicare taxes.
  • Bringing the total tax bill to $718,775, or 47.91 percent of total income.

Source: Charles Hurt, David Seifman and Jennifer Fermino, "Dem Health RX a Poison Pill in NY: Terrifying 57 Percent Tax Looms for Biggest Earners," New York Post, July 16, 2009.

For text:

http://www.nypost.com/seven/07162009/news/regionalnews/dem_health_rx_a_poion_pill_in_ny_179525.htm 

 

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