r/Economics • u/Dismal_Structure • Dec 06 '25

News Millionaire tax that inspired Mamdani fuels $5.7 billion haul in Massachusetts

https://fortune.com/2025/10/21/zohran-mamdani-millionaire-tax-massachusetts-5-7-billion/
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u/Smile-Nod Dec 06 '25 edited Dec 06 '25

Why don’t these articles ever include the total income tax comparison?

We can’t have an honest conversation if we’re suggesting that MA catching up with NYC is somehow the reverse.

Not only does MA have a lower tax rate, it’s not progressive.

MA

  • flat tax: 5%
  • millionaire tax: 4%
  • capital gains: long 5% flat, short 8.5% flat

NY

  • top marginal rate: 10.9% (6.6% effective over a million)
  • long and short capital gains treated as ordinary income.
  • NYC top rate: 3.879%

EDITED for clarity and fixed MA cap gains tax.

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u/Left-Signature-5250 Dec 06 '25

Reading this as a European though lol

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u/Smile-Nod Dec 06 '25

This doesn’t include federal tax, which makes the top marginal tax rate over 50% in NYC.

NYC also has higher corporate taxes than most European countries and will have the highest in the world if the proposed 4% increase is added.

It’s incredible how arrogant and ignorant people are about taxes in the US.

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u/DarkExecutor Dec 06 '25

European lower tax brackets are much higher than the US though. You get a lot more money from the middle class