Dan Price says raising min wage to $70k led to baby boom, revenue rise

Re:Dan Price says raising min wage to $70k led to baby boom,... by the-rc on Wednesday September 15, 2021 @03:13PM (#28543114)

With the exception of NY State, where there's a recapture at $1.1M that makes rates no longer marginal...

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Re:Dan Price says raising min wage to $70k led to baby boom,... by seanmcdirmid on Wednesday September 15, 2021 @04:05PM (#28543696)

Recapture only applies to tax credits, and is itself gradually phased in. It also doesn't seem to be based on income, but rather not adhering to the terms of the tax credit over the long term:

https://www.tax.ny.gov/bus/ct/Recapture-of-tax-credits.htm

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Re:Dan Price says raising min wage to $70k led to baby boom,... by the-rc on Wednesday September 15, 2021 @05:42PM (#28544741)

The state doesn't call it as such and it doesn't really mention much about it anywhere, other than implicitly in worksheet 7 on page 59 of the 2020 IT-201 form. It's still a recapture, though, and it does apply to income. It's separate from tax credits. Try the worksheet. By the way, most online tax calculators seem not to know about it, either.

See e.g. https://www.bogleheads.org/forum/viewtopic.php?t=247046 where someone points out that CT does the same and calls it recapture.

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Re:Dan Price says raising min wage to $70k led to baby boom,... by seanmcdirmid on Wednesday September 15, 2021 @06:00PM (#28544939)

I'm not finding that to be very reliable, as I can't find a news article or even someone else complaining about the same problem. Are you sure they just didn't mess up on their tax return somewhere?

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Re:Dan Price says raising min wage to $70k led to baby boom,... by the-rc on Wednesday September 15, 2021 @10:50PM (#28547371)

You can enter toy numbers in TurboTax and see, but I found more references, e.g. when they wanted to make NYC track NYS' model:

https://www.nytimes.com/2003/05/12/nyregion/highest-tax-will...

https://www.empirecenter.org/publications/new-yorks-ugly-ste...

AR, too? https://taxedright.com/new-york-taxes/

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Re:Dan Price says raising min wage to $70k led to baby boom,... by acchow on Wednesday September 15, 2021 @03:21PM (#28543211)

Could you explain the recapture please?

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Re:Dan Price says raising min wage to $70k led to baby boom,... by the-rc on Wednesday September 15, 2021 @05:37PM (#28544692)

For 2020, the top bracket starts at $1,077,550. Then, gradually through the first $50K into the bracket, it becomes a full 8.82% tax on every single dollar of income, other brackets included. For 2021, that rate has been bumped up to 9.65% and two new ones — 10.30 and 10.90% — have been added. I think the cut off amounts at which this flat rate system phases in are still the same.

But the craziness with the most recent changes doesn't end there. From July 2021, employers are required to withhold from bonuses and overtime at the new supplemental rate of 13.78%, which is quite a bit higher than even the top bracket. That guarantees even more and larger refunds for taxpayers next year. Or, if you look at it another way, a bigger interest-free loan to the state.

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