(Currently, since earnings subject to the payroll tax are capped at $113,700, someone earning $1 million only pays 0.5percentt of their earnings into the program).
But when it comes to payroll taxes, the rich pay a far lower effective rate than everyone else – 1.7 percent compared to 7 percent – because the income subject to payroll taxes is capped at $107,000.
Right now, the amount of wages subject (or assessed for) to Social Security payroll taxes is capped at $128,400.
Today the total deduction for all of these taxes is capped at $10,000.
Capital gains taxes are capped at 15 percent.
The taxes are capped at 6percentt of net patient revenue, and public, psychiatric and children's hospitals are excluded from them.
"Capital gains and investment income taxes are capped at 15 percent, so the larger the percentage of your income attributable to those items, the lower your tax rate will be.
Mr. Ravitch, who was lieutenant governor under Mr. Cuomo's predecessor, Gov. David A. Paterson, said it would be particularly damaging to New York if the federal income tax deduction for state and local taxes was capped or eliminated, given the state's high tax rates compared with other states; if such an action were taken, he said, high earners could be motivated to move elsewhere.
Property owners' taxes are capped.
For higher-end staff, where China's 45% top personal income tax rate kicks in even if payroll taxes are capped, there's a similar accelerator effect.
