Overview

In 2009, New York state enacted a temporary personal income tax surcharge on “high earners.” This surcharge increased the top personal income tax rate by 31%. While it was intended as an emergency measure to help the state through the economic recession of 2008–2010, interest groups that depend on state spending have pressed for permanent extension of the surcharge.

However, arguments for maintaining the surcharge on high earners ignore important factors that suggest maintaining the tax surcharge is not in the best interests of economic growth, job creation, and the future of all the people of the state.