If Tax Cuts Expire, Earners In Three States Will Pay More Than Half Of Income In Taxes In 2013

If the tax cuts passed during President George W. Bush’s term expire as scheduled on Dec. 31 and return to previous levels, taxpayers in three States will see their marginal tax rates exceed 50 percent, according to a study by two Lynchburg College economists.

Gerald T. Prante and Austin John recently compared State-by-State estimates of the top marginal effective tax rates (METRs) on wages, interest, dividends, capital gains and business income for the 2012 tax year and rates scheduled for 2013 under current law. They found that the highest earners in California, Hawaii and New York will pay more than half their income to government.

Californians would get a double whammy. The first blow came from Proposition 30, which passed last month and increased sales and income taxes retroactively to the beginning of the year. The second will come if Congress and President Barack Obama fail to negotiate a deal to continue the lower tax rates in the so-called fiscal cliff negotiations. Obama seeks to raise taxes on those earning more than $200,000.

According to the study, the top marginal rate for Californians will climb to 51.9 percent. Hawaiians will see their rate increase to 50.5 percent. New Yorkers will have a rate of 50.3 percent.

Bob Livingston is an ultra-conservative American who has been writing a newsletter since 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

| All posts by Bob Livingston

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15 Responses to "If Tax Cuts Expire, Earners In Three States Will Pay More Than Half Of Income In Taxes In 2013"

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  1. Right Brain Thinker says:

    And the hearts of those who are worried about where their next meal is coming from will surely go out to them. Or perhaps compassion for the greedy rich doesn’t trickle upward from the 99%? Just as compassion from the greedy rich doesn’t trickle downward to the 99%?

    • Charles A says:

      Right Brain Non Thinker, your inability to talk about rich people without using “greedy” as an adjective shows how pitiful you are. When have you ever talked about the government in the same disparaging terms? I’m sure you have never done that. You are gullible enough to believe that the government that is the real source of the devastation wracking this country is “helping” you.

  2. David in MA says:

    I bet there are a lot of people are glad they voted for the undocumented one now, ha ha ha ha……remember the old saying? Be careful what you wish for, you just might get it.
    Ha ha ha, you idiots got it and you gave it to America, an islamic marxist, to bad the ghetto slugs and illegal immigrants don’t know what a marxist is, but they are about to find out. First black president? NAW! First American dictator…Enjoy the ride to an Uganda type dictatorship and all that goes with it.

    I pray for the Lone Wolf.

  3. tim meenan says:

    yea like we feel real bad for those states–notttt ! those rotten liberal states let them eat cake because they voted for obuma !

  4. David McCoy says:

    Califiornia is broke with 14 and one half percent unemployment! Taxes go up and big business will go elsewhere leaving the carnage behind. Guess we here in Ca. will never learn. Seems to me they have gone crazy.

  5. EG says:

    Who is responsible for the debt??? The Democrats controled President and Congress 10 times out of the nlast 12 times. The Republicans controled President 54% of the time. Democrats controlled Senate 70% of the time. The Democrats controlled the House 71% of the time. I am a conservative Democrat. The good Democrats have lost their backbone. The Democrats are the main culpertr for debt.

  6. Right Brain Thinker says:

    Right Brain Thinker said:

    “And the hearts of those who are worried about where their next meal is coming from will surely go out to them. Or perhaps compassion for the greedy rich doesn’t trickle upward from the 99%? Just as compassion from the greedy rich doesn’t trickle downward to the 99%?”:

    Charles A says: “Right Brain Non Thinker, your inability to talk about rich people without using “greedy” as an adjective shows how pitiful you are. When have you ever talked about the government in the same disparaging terms? I’m sure you have never done that”.

    Tut, tut, Charles—-you need to read comments a bit more closely before you jump on people’s cases. I am perfectly able to talk about rich people without using “greedy”. My use of “99%” (twice in three sentences) should be a clue that I was talking about the 1%—-they are the true “greedy rich”. With the next tier down on the “rich” scale, that may not be the case for all.

    And I have called “the government” worse things than “greedy”—-but only that “shadow” part like legislators and lobbyists who are helping the “greedy rich” take over the country. The actual “government”, as in agencies and offices that do the work of “governing”, can hardly be called greedy.

    EG says: “Who is responsible for the debt???The good Democrats have lost their backbone. The Democrats are the main culprit for debt”.
    I agree that the Democrats are to blame for letting the Republicans get away with what they have done and actually “going over” to join them. Read “Death of the Liberal Class” by Chris Hedges (a near flaming liberal), for the truth of that. “Winner take All Politics” indicts ALL politicians.

    I would disagree that the Dems are the “main” culprits. They deserve plenty of blame but the data shows that the debt is far more a result of the the programs of the Republicans than the Dems. If the Bush tax cuts are allowed to expire, most of the present deficit will disappear. If we had paid for the two Mid-East wars as we fought them, the debt would be much smaller. Etc.

    • Right Brain Thinker says:

      PS to Charles.

      If you haven’t noticed in reading my other postings on PLD, calling me things like “pitiful” does nothing but give me a brief chuckle and often brings on a response that the name-callers find even more difficult to deal with than the original. I may be many things, but “pitiful” is not one of them. Poor word choice. Try again.

  7. Walt says:

    “the top marginal rate for Californians will climb to 51.9 percent. Hawaiians will see their rate increase to 50.5 percent. New Yorkers will have a rate of 50.3 percent.”

    Fantastic! The idiot liberal voters in those three states overwhelmingly voted for the “Dear Leader”, so now they can pay through the nose for their folly. No sympathy for them here.

  8. David in MA says:

    There is, from time to time, justice.

  9. Replublicans had rather see America reduced to a third world nation than pay their rightful share of the tax burden! Thats the truth of the matter! They hide their wealth in Swiss bank accounts and in the Cayman Islands to avoid paying taxes! They need to be prosecuted for tax evasion!!!

    • Billy Shahan says:

      horse cookies to you terrell we moderate republicans do believe the upper 1% do need to loose some of their”LOOP HOLES” and pay the same rate as they shold be….. also we moderate republicans believe the SSI should have a ceiling so the ultra rich does not drain the cookie jar…. but on the other hand…. i have never recieved a paycheck from a poor man…. there needs to be checks and balances while still having job creation…. and face it a poor person cannot create jobs w/ a payroll

    • Petitebabe says:

      Prosecuted for tax evasion? The obama administration should be prosecuted for wasting taxpayers money. 90 billion on failed green energy projects.

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