The Inequality of Taxes in NYC

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This post first appeared on witBlog This past Sunday an article I researched was published in the NY Post - Financial District residents get highest tax bills, returns in city

We like to think of New York City as The Melting Pot...and as a whole its the most diverse city in the country hands down.  Diverse in culture, ancestry, race, cuisine, employment, and economics.  But when you look locally and compare neighborhoods, zip codes and blocks, we find that the city is actually quite segregated along each of those dimensions.

The IRS' Statistics of Income (SOI) dataset is particularly compelling when evaluating economic diversity.  While we certainly expect that individuals will have widely disparate income, taxes, deductions and refunds, looking at the data by Zip Code illustrated how wealth is concentrated in a handful of neighborhoods.

Zip Code Deciles

Let's take a look at some of the IRS data grouped into decile ranges.