Zohran Mamdani, New York City's new socialist Mayor, just dropped a bomb on the future of the once-great City. Talking about how he plans to pay for all the free shit he wants to do and give away, he outlined his plan: "What I've proposed is that we raise $10 billion to pay for our entire economic agenda and start to Trump proof our city… And we will do so in two key ways.
He added: “And we will do so in two key ways. The first is to match the state's top corporate tax rate to that of New Jersey. We are at 7.25%. They're at 11.5%. Corporations can pay it over there, they can pay it over here.
And the beauty of it is that it doesn't just apply to corporations headquartered in New York City, because when you say this, people will say, well, they're going to go to Florida. Wherever you are headquartered, as long as you do business in the state of New York, you are taxable for that corporate tax.
— The second is taxing the top 1% of New Yorkers. We're talking about people who make a million dollars a year or more, taxing them just by a flat 2% tax increase.”
A single filer earning $1 million annually in New York City can expect to pay over 50% of their income in combined taxes, as the city has the highest tax rate for top earners in the U.S. Total taxes include federal income tax (up to 37%), NY State tax (8.82%–10.9%), and NYC resident tax (approx. 3.876%), bringing the total marginal rate potentially over 50%.
Here is a breakdown of the tax components for a $1,000,000 annual income in NYC:
Federal Income Tax: The highest marginal rate is 37% for top earners. New York State Income Tax: For income over $1 million, the rate is 8.82% up to 10.9% for higher brackets. New York City Income Tax: Residents pay an additional local income tax, with top rates at approximately 3.876%. FICA Tax (Social Security/Medicare): While Social Security is capped at $184,500 in 2026, Medicare taxes ($1.45% for employees) apply to the full amount.
Combined, these taxes often result in an effective tax rate exceeding 50% for top earners, making it the highest tax burden in the U.S. And he wants to add on to that...
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Who knew democratic muslm communist utopia could be so expensive.
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