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New York City Might Impose Millionaire’s Tax

Taxing the rich sounds like a very tempting idea, even to New York City politicians. Controller William Thompson had opposed the controversial law when it was first proposed in October 2008. Now he’s changing his tune as the city’s financial woes worsen.

Thompson, a Demcrat who is also a candidate for mayor, said “the financial situation has changed dramatically,” in recent months, prompting the evolution of his position.

The rich can help make up the city’s huge looming budget gap.

“Those who are doing better need to help in these tough times,” he said.

Mark Page, the City Budget Director, wasn’t as enthusiastic about levying extra taxes on those who “do well.”

“You don’t have to lose many to suffer income losses and end up with less money than before you increased the tax,” he said.

The top 1% of city income tax payers already contribute 47.8% of the city’s revenue from taxes, multiple sources reported.

For people earning one million or more, the income tax top rate would be 4.8, up from the current 3.65%. That would cost millionaires about $11,500 per one million earned.