There’s been an ongoing race over the past two decades between California and New York to see which state can tax the rich the most. Right now, California with a top income tax rate of 14% has a slight lead over New York, at 13.3% (which counts the NY City income tax surcharge).
But now, Rep. Alexandria Ocasio-Cortez has endorsed a Democratic Socialists of America plan to almost double the state’s income tax rate to as high as 24%, according to the New York Post. This is on top of the federal rate of 37%. The new tax rates would start to climb for those New Yorkers with incomes above $250,000, which for residents of Manhattan where the cost of living is as high as the Empire State Building, is practically the average income.
The DSA’s soak-the-rich proposal comes as a new study finds the Empire State has suffered an exodus of 27,101 millennials aged 26 to 45 earning more than $200,000 a year than any other state. By contrast, Florida has had a 5.6 percent increase in wealthy millennials.
Something tells us Florida, Tennessee, and Texas – which have no state income tax – are about to get a lot more crowded.