Rep. Nick LaLota (R-NY-01) is calling for a $300 billion tax hike on American households and individually-owned businesses by proposing to raise the top individual income tax rate to 39.6 percent.
LaLota is refusing to support the Trump-endorsed tax package that delivers on the President’s agenda of across the board tax cuts for every income level and extends the 2017 Trump tax cuts.
Instead of backing President Trump’s tax cut agenda, LaLota called on Saturday for raising the top marginal income tax rate for individuals to 39.6 percent in a post on X:
This tax increase would hit more than 26 million small businesses that file through the individual side of the tax code, such as pass-through businesses including sole proprietorships, partnerships, and S corporations. According to Lakota’s own post, this tax hike would increase taxes by roughly $300 billion.
LaLota Would Hit New Yorkers With a Combined Top Individual Tax Rate of 54.3 Percent
LaLota would allow the federal top individual income tax rate to revert to the higher Obama-era level of 39.6 percent. When combined with the existing 3.8 percent Obamacare surtax, individually owned businesses could face a top tax rate hike to 43.4 percent.
New York has a high top individual income tax rate of 10.9 percent and is one of only two states with a “tax benefit recapture” provision, where the benefit of lower rates is phased out and a taxpayer’s top rate is ultimately applied to all income, not just marginal income above a certain level, according to the Tax Foundation.
This means that under LaLota’s plan to hike the top individual tax rate, New Yorkers would face a combined federal-state top rate of 54.3 percent.
Americans for Tax Reform opposes Rep. LaLota’s call to raise the top income tax rate, as well as any effort to increase income tax rates on individuals or businesses.
President Trump and all congressional Republicans campaigned on making all the tax rates reductions permanent. Kamala Harris ran on letting the top income tax rates reductions passed by Trump to spring back to the higher pre-Trump/Obama tax rate. All tax rate increases damage economic growth and kill jobs by disincentivizing work and investment.
Small Businesses and Manufacturing Oppose LaLota’s Tax Hike
Ninety Small and Mid-Sized Manufacturing, Machinist, Builders and Contractors Groups: “As long-time Main Street champions, we encourage you to stand strong and oppose any effort to increase income tax rates, including recent proposals to raise the top individual rate to 40 percent.”
President Trump’s Promise to Cut Income Taxes for Every Income Level
Let’s take a look at President Trump’s promise to the American people:
President DONALD TRUMP: “We are seeking permanent income tax cuts all across the board.” “I will make the Trump tax cuts permanent.” “I’ll give you a Trump middle class, upper class, lower class, business class big tax cut.” “I hope the House and Senate are able to agree on making the Tax Cuts PERMANENT.”
