New York s Hot Export: People – WSJ

Legislators in Albany are considering two tax bills that could seriously damage the economic well-being and quality of life in New York for many years to come: a wealth tax and a stock transfer tax.

It is likely the top federal rate on capital gains will increase to 40%, and the combined New York state and city rate may reach 15%. Should New York enact a 2% wealth tax, a wealthy New Yorker could wind up paying a 77% tax on short-term stock market profits. And that s a conservative estimate: It assumes that stocks return 9% a year. If the return is 4.4% or less, the tax would be more than 100%. Now we know what a fair tax looks like.

via www.wsj.com