Current Status of the Local Income Tax in New York City

Author: Tatsuhiko Tani
Date: 2016/3/29
No: DP2016-007
JEL Classification codes: H71, H24
Language: Japanese
[ Abstract ]

The orthodox view of local taxation is that local governments should not levy a progressive local income tax. However, a progressive local income tax is a major revenue source of New York City government revenue. Furthermore, in recent years, several Democrats in New York City have raised plan to make the city’s income tax more progressive. Why is it considered that a progressive local income tax is a fair tax in New York City? This paper explores the economic and political background of progressive local income taxation in New York City.