Jack's Newswatch

Congressional plans to fund a massive health-care overhaul could have a job-killing effect on New York, creating a tax rate of nearly 60 percent for the state’s top earners and possibly pressuring small-business owners to shed workers.

New York’s top income bracket could reach as high as 57 percent — rates not seen in three decades — to pay for the massive health coverage proposed by House Democrats this week.

The top rate in New York City, home to many of the state’s wealthiest people, would be 58.68 percent, the Washington-based Tax Foundation said in a report yesterday.

That means New York’s top earners, small-business owners and most dynamic entrepreneurs will be facing new fees and penalties.

The $544 billion tax hike would violate one of President Obama’s ironclad campaign promises: No family will pay higher tax rates than they would have paid in the 1990s.

Under the bill, three new tax brackets would be created for high earners, with a top rate of 45 percent for families making more than $1 million. That would be the highest income-tax rate since 1986, when the top rate was 50 percent.

The legislation is especially onerous for business owners, in part because it penalizes employers with a payroll bigger than $400,000 some 8 percent of wages if they don’t offer health care.

[More]

Related:

Massachusetts in Suit Over Cost of Universal Care

Updates:

1:12 pm EDT, July 16th, 2009 — It’s Not An Option

1:21 pm EDT, July 16th, 2009 — McCardle: More Thoughts on the Health Care Surtax

1:22 pm EDT, July 16th, 2009 — Kimble: Preparing for the Coming Tax-Revolt

1:29 pm EDT, July 16th, 2009 — Simon: “Don’t smell it. Sell it!”

1:33 pm EDT, July 16th, 2009 — Moran: Don’t Get Sick

1:37 pm EDT, July 16th, 2009 — Vliet: Goodbuy Privacy, Hello Taxes

Notes:

Re: 1:12 pm update — Reader Patrick Ying disagrees:

Investor’s Business Daily did not continue to read the bill to page 19. “Individual health insurance coverage that is not grandfathered health insurance coverage under subsection (a) may only be offered on or after the first day of Y1 as an Exchange-participating health benefits plan. ” It does not outlaw individual private coverage – you can still buy the plan on the Exchange where they will compete with the public option, not be replaced by it. The advantage of the Exchange, is that the coverage no longer has one of the problems of individual coverage – skyrocketing premiums should you become ill.

More Notes:

If you think the American Revolution was something you ain’t seen nothin’ yet!

Popularity: 22% [?]