Sorry, Sen. Chuck Schumer, Rep. Tom Suozzi and others who got SALT income-tax deductions restored in the latest version of the Build Back Better spendapalooza: The bill’s other tax hikes means it’s still a big loser for the folks you claim to help.
We noted last week that SALT is a gift to high earners in high-tax states. But those same folks will get slammed by the BBB tax hikes.
Those include a 5 percent surcharge on incomes above $10 million, plus another 3 percent on earnings above $25 million.
And it’s not just those super-high earners: The bill drops a 3.8 percent Medicare surtax on incomes above $400,000.
As the Tax Foundation notes, the multitrillion-dollar bill would raise the average top tax rate on personal income to a whopping 57.4 percent, the highest in the developed world. And even with SALT reducing the hit, state taxes will still raise top New Yorkers’ effective rate to 66.2 percent. (It’s 63.2 percent for New Jersey and 64.7 percent for California.)
So much for Schumer, Suozzi and Speaker Nancy Pelosi trying to shield their constituents from the reality of blue-state living. In reality, these hikes would only accelerate the flight of top earners to lower-tax states; a deduction of up to $72,500 won’t make a difference.
In 2019 alone, million-dollar-plus earners in New York City paid $10 billion in state taxes, representing almost half of the state’s income-tax collection from the city. Expect that to plummet if Democrats get their way.
Build Back Better = Devastate New York’s Tax Base.






