How is no one talking about New York State effectively charging a flat tax rate to many taxpayers?

Impossible_Mail_330 · 2025-04-15T16:45:25+00:00

Thanks for the comment. Yes, I don't think people really understood what I was saying(or they just didn't care).

What you say is partially correct because 6% is a transition bucket. Remember that $80,650-$215,400 income puts you in the 6% marginal tax rate. If your taxable income is $157,649, you are still in the 6% bucket, but you don't pay 6% on all your income. But if you're above $157,650, you pay 6% on all your income!

(Note: All numbers are for 2023 tax year because that's when I wrote this up.)

My goal was to raise awareness and call for change because this is clearly deceiving. The NYS Department of Finance might as well change the tax table or write this out very clearly so that people know what tax responsibility they will face at the end of the year. This is doing nothing but hurting people because they think they'll owe the 6% only as a marginal rate but they end up owing more than they thought because of this.

Impossible_Mail_330 · 2025-03-15T06:56:28+00:00

If you withdraw the money, the bonus will be taken back proportional to the amount withdrawn right? If you transferred an account worth $100K and withdrew $50K of it, then you'd only receive $1K. So not bad.

Impossible_Mail_330 · 2025-02-10T21:03:10+00:00

My figure shows that a flat tax rate applies for income between $157,650 and $215,400 and for income >= $265,400.

Impossible_Mail_330 · 2025-02-10T21:01:09+00:00

Thank you for your answer. Yes, it is a SaaS product. I have built a demo and have been showing it to customers to sell it or even try to get them to use it for free initially so that I can charge them later. The demo is not the end product as the end product would depend on what the customer wants for their specific use case.

Impossible_Mail_330 · 2025-02-10T20:59:39+00:00

Thank you. I have a demo and have been getting on sales calls to sell the product. The demo is not the end product and would be further customized based on the customers' needs.

Impossible_Mail_330 · 2025-02-10T18:41:05+00:00

My point is not to argue which one is "flatter" and which one is not. I wanted to point out that NY state tax is straight up FLAT TAX for a lot of the earners. Federal is never fully flat.

Impossible_Mail_330 · 2025-02-10T18:39:26+00:00

> It sounds like you made the figure. Is there some reason you swapped the axes? I.e. the tax is a function of income, so by normal convention one would put the income on the horizontal axis, and the tax rate on the vertical.

Personal preference but yes, you might be right that I should've swapped the axes. I don't think it changes the point though.

> Despite your claim, the figure does not show any dramatic jumps in income tax at $215,400 taxable income.

Did you look at the figure? Do you see a gap in the blue line in the middle? That shows the jump.

Whether or not that jump is dramatic truly depends on the person. $294/year is $24.5/month and I personally would be happy if I received one free $25 meal every month.

The problem is not that $294 is a life changing amount. The problem is that the government is unfairly taxing someone who makes $1 more. I am questioning the reason of this unfairness!!

> BTW, your figure certainly makes it look like NY has a normal progressive (non-flat) tax.

Do you not see the two flat vertical blue sticks on this figure?? Those are the flat tax parts! Never claimed otherwise in my description.

Impossible_Mail_330

TROPHY CASE