Many of you were confused (or perhaps annoyed) by the table I posted a couple of days ago in my blog entry on the new tax rules, finding it somewhat internally contradictory.
The investigative news organization (and sometimes NPR partner) Propublica has an article today that makes it clear why some are saying taxes are going down for the superrich, and others are saying they’re going up.
Here’s a teaser:
“Under the overhaul, which was passed on Thursday, one bracket of wealthy New Yorkers will be getting a bigger tax cut than the taxpayers in any other bracket. Specifically, individuals making between $500,000 and $2 million will pay 2.12 percent less in state income taxes for 2012. In contrast, individuals making between $40,000 and $150,000 are only getting a reduction of 0.4 percent, as this New York Times chart shows.”
What, you say? Everyone said they’re getting a tax hike! Well, they are, relative to the base tax rate in NYS:
“New York Gov. Andrew Cuomo — and apparently, much of the media — has been using New York’s base rate of 6.85 percent to calculate the “raised” taxes for the rich. But for the past three years, wealthy New Yorkers making more than $200,000 (or $300,000 for households) have paid the base rate along with an income-tax surcharge on top of it. It’s also known as the “millionaires’ tax,” and it expires at the end of this year.”