Saturday, February 12, 2011

McMegan gets upset by taxes

Own a Second Home in New York? Prepare for a Higher Tax Bill. - Megan McArdle - Business - The Atlantic:
"I don't even see how New York can assert the authority to tax the same income after Connecticut has already (quite properly) levied its full income tax on legal residents of the state. I presume it envisions a situation like its revenue-sharing deal with New Jersey, or the US federal tax on corporate income earned abroad. But as I understand it, the revenue sharing deal means that people who live in one state and work in another pay the same as, or less than, they would otherwise in taxes. In this case, New York seems to be trying to levy a gratuitous 2% income tax on wealthy vacationers. "

One year I lived, and worked, in CT for a consulting company based in NJ for part of the year. I never set foot in New Jersey and had other income in CT. I had to pay CT income tax on ALL of my income as well as NJ tax on ALL my income. One was as a resident, one as a non-resident. This is kinda the way it is supposed to work isnt it?

Spare me the whining. The taxes owed were over 1 million dollars. The top tax rate in NY is 6.85% ... do the math on the amount of income involved.

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