States Increase Income Tax in Face of Financial Woes

According to the Wall Street Journal, states facing income deficits are increasing taxes on their wealthiest residents to fill the gap:

A flurry of rate increases occurred this year, and tax analysts say the trend will accelerate in 2010.  . . .

Californians, who have a top individual rate of 10.55% on income over $1 million, actually gained in sideways fashion from recent rate raises around the country. The state dropped below Hawaii, Oregon and New Jersey on the list of places with the highest individual tax rates.

Hawaii enacted a top individual rate of 11% on income over $200,000, Oregon has a new 11% rate on income over $250,000, and New Jersey enacted a 10.75% rate on income above $1 million.

Arden Dale, States Turn to ‘Millionaire’s Tax,’ WSJ, Nov. 13, 2009.

Special thanks to Patrick S. Sylvester (Attorney & Counselor at Law, Sylvester Law Firm, PC) for bringing this article to my attention.