Wealthy residents of these states could feel the tax squeeze if Harris wins – Is yours on the list?

As the possibility of a Kamala Harris presidency looms, high earners across the country are increasingly concerned about how potential tax policy changes could affect their finances.

While wealthy people across the country could feel the impact, experts suggest that residents of certain states could bear the brunt of the changes.

Don’t miss:

Cliff Ambrose, founder and wealth manager at Apex Wealth, said already high-tax states like California and New York could take the most significant financial hits.

Similarly, Anthony DeLuca, a financial planner at Annuity.org, warns that high-tax, tax-friendly states could face changes, especially if federal tax increases are implemented.

Trends: Elon Musk and Jeff Bezos are optimistic about a city that could dethrone New York as the new financial capital of the US. Investing in its booming real estate market has never been more affordable.

“If Kamala Harris wins, states like California and New York will likely see upper-class wages take a hit,” Ambrose told GOBankingRates. “Both states already have high state income taxes, and Harris’ proposed tax hikes on higher earners could further reduce pay for the wealthy.”

DeLuca agrees, noting that any state with a state income tax will become more burdensome for members of the upper class.

Trends: A billion dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.

He specifically pointed to New York, where people could face “a 43.9 percent federal state capital gains tax” if Harris wins. DeLuca also noted that New York and California are home to the most S&P 500 headquarters, suggesting that concentrations of large corporations in high-tax states could have broader economic consequences.

States with no income taxes may not escape the impact of the potential changes.

“In states like Florida that don’t have a state income tax, the impact could come from federal tax increases rather than changes at the state level,” Ambrose said.

This suggests that even upper-class residents of tax-friendly states could see changes in their wages due to possible changes in federal tax policy.

Trends: Warren Buffett once said, “If you don’t find a way to make money while you sleep, you’ll work until you die.” Paying 7.5% – 9%, these high yielding real estate notes make it easier than ever to earn passive income.

DeLuca also singled out New Jersey and Massachusetts as states where upper-class incomes could be significantly affected. He noted that those states, along with New York and California, “will rise above the 40 percent threshold” in combined federal and state tax rates for high earners.

The story continues

While much attention is paid to income and capital gains taxes, DeLuca highlighted another critical factor: energy policy. States heavily dependent on fossil fuel industries could experience economic changes under a Harris administration.

“Wyoming produces 41 percent of the U.S. coal production,” he said. “Any employer or family business based in this industry would be at serious risk because of (Harris’) economic and energy management ideas.

Trends: Will house prices continue to rise or fall? People are learning about risk-free real estate investments that allow you to cash out whenever you want.

DeLuca also noted that New Mexico, which accounted for 13 percent of U.S. crude production in 2022, could face challenges if funding shifts to alternative energy sources.

Understanding the potential changes under a Harris administration involves recognizing that they are part of a larger political agenda. Harris’s proposed tax increases on high-income earners are aimed at funding programs like health care and infrastructure, which can have an impact on the broader economy.

See also: This startup backed by Jeff Bezos will let you become an owner in just 10 minutes and you only need $100.

DeLuca pointed out that many states poised for the most substantial effects on upper-class wages are also key players in national gross domestic product. This highlights the complex relationship between fiscal policy, economic growth and income distribution.

It’s important to remember that campaign proposals are just that – proposals. They don’t always become law as envisioned, as any legislative change must navigate the complexities of Congress.

Read on:

UNLOCKED: 5 NEW TRANSLATIONS PER WEEK. Click now to get top trading ideas dailyplus unlimited access to state-of-the-art tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

This article Wealthy residents of these states could feel the tax squeeze if Harris wins – Is yours on the list? originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.