Democrat Spending Bill Poised to Push Personal Income Tax Rates to Highest in Developed World

The Democrats nearly lost the New Jersey governor’s race last week, a close contest in which high taxes was a central issue. Despite that near-death experience, Democrats in Washington are redoubling their efforts to pass their nearly $2 trillion budget reconciliation bill, which is expected to sharply raise tax rates nationally, especially in historically blue states.

The Tax Foundation estimates that the social spending bill is going to drive the “average top tax rate on personal income” up to 57.4%, which would be the “highest rate in the Organisation for Economic Co-operation and Development (OECD).”

New York, California and New Jersey would have the highest combined federal-state tax rates after passage of the reconciliation legislation in its current form, according to the organization.