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New York to tax luxury second homes in NYC

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Re: New York to tax luxury second homes in NYC

#41

Post by lovich »

busterarm wrote: post #31
lovich wrote: post #27

Earlier quoted context omitted.

Oh shit, I didn’t realize the billionaires who can have multiple homes in Manhattan are crabs in the same bucket as us. Luckily the law is much more egalatarian and bars the rich and poor alike from sleeping under bridges or stealing bread.

NYC only has 154 billionaires. The percentage of NYC's second homes owned by NYC billionaires is fractional (59,000 total units). No, this will disproportionately negatively affect middle-class people and families and fuck them hard. > I didn’t realize the billionaires ... are crabs in the same bucket as us. All of us go to the same place in the end my dude. Life is too short and too hard to spend all your time livin…

If you have a second home in manhattan, you are not the middle class _and_ you can afford it.

If the idea of paying taxes affects your poor fragile mind so negatively then there is an easy solution where you can sell said extra home.

No one is being fucked hard by this other than people who are appalled at the thought that they need to contribute to society for the negative externalities they create, like accumulating excess shelter in regions with a dearth of housing capacity.

Re: New York to tax luxury second homes in NYC

#42

Post by jjtheblunt »

jmclnx wrote: post #7

> an initiative to appease Mayor Zohran Mamdani and liberal voters Taxing the rich is not a Liberal thing, but the Rich is calling it that because they do not want to pay any taxes at all. He was elected because people are starting to feel real pain and seeing the ultra rich paying far less taxes then they are. If it was up to me, I would tax all the second homes above 5 million USD and add a Luxury Tax on all valuab…

i am not in NY, but aren't yearly auto registrations scaled significantly by the value of the auto?

that seems to be true in Arizona, for example.

Re: New York to tax luxury second homes in NYC

#44

Post by [deleted] »

giantg2 wrote: post #32
jmclnx wrote: post #7

> an initiative to appease Mayor Zohran Mamdani and liberal voters Taxing the rich is not a Liberal thing, but the Rich is calling it that because they do not want to pay any taxes at all. He was elected because people are starting to feel real pain and seeing the ultra rich paying far less taxes then they are. If it was up to me, I would tax all the second homes above 5 million USD and add a Luxury Tax on all valuab…

"seeing the ultra rich paying far less taxes then they are." Is this actually true? I thought looking at the aggregates that the top 10% pay something like 1/3rd of all income/cap gain taxes.

[deleted]

Re: New York to tax luxury second homes in NYC

#45

Post by AdrianB1 »

9dev wrote: post #23
busterarm wrote: post #12

Earlier quoted context omitted.

The top 1% of NYC residents contribute 40-48% of all personal income tax collected in NYC. When you extend that to Top 2.5% you cross 51%. Personal Income Tax accounts for around 31% of collected NYC tax revenue. "The rich" also pay property tax. NYC's poorer residents generally don't have property to pay tax on. Everyone pays sales tax equally. So how exactly are the ultra rich paying "less taxes"?

This claim is often repeated but simply misleading. Taxable income is only a tiny fraction of the wealth of ultra rich folks - many even take symbolic wages, because their real compensation happens in stock, which they can use to lend effectively infinite money. There's a great episode of the Ezra Klein Show on this topic too[0]. [0]: https://open.spotify.com/episode/3Jjy4drElYHNMRtxVQPENR?si=5...

That does not address the point. You say they should pay even more to address the idea that very few people pay most of the taxes, what is the logic here?

Re: New York to tax luxury second homes in NYC

#46

Post by a_shovel »

busterarm wrote: post #5

I strongly doubt that this is going to have the effect that they want it to. It won't raise the taxes that they expect it to. It won't free up inventory. It will halt construction.

I don't think the demand for second homes worth over $5 million is a major driver of construction of new units in NYC.

Re: New York to tax luxury second homes in NYC

#47

Post by ianm218 »

nickv wrote: post #17
ch4s3 wrote: post #4

Earlier quoted context omitted.

It seems like a place like Manhattan might benefit from first up-zoning the low slung sections that are currently 4-8 stories. My point here is that I'd start with trying to build enough housing before spending political capital on marginal things that neither unlock supply nor generate much revenue.

You're right, when I think of a place that has an overabundance of 2 floor single family homes, I think of Manhattan.

It has a huge amount of areas that are underdeveloped relative to demand. Many areas with height restrictions that block basically all new developments. For example West Village is one of the most in demand zip codes in the entire world caps new builds around 80 feet. East village caps housing @ mid rise so new grads who live there spend half their income on housing.

He is right.

Re: New York to tax luxury second homes in NYC

#48

Post by braiamp »

bsimpson wrote: post #40

Reactionary taxes like this have a tendency to be ill-considered and have unintended side effects. NY also has a 1% penalty on paying more than $1 million for housing, which was probably enacted to proletariat applause when $1 million was still considered a lot of money. Now it distorts the value of entry level housing in NYC, where you'll have a hard time finding anything more than a studio apartment for $1 million.…

Even in worse case scenario, which this isn't, the affected persons would at most try to cheat the system. This proposal is really narrow to non-primary residences, that are also very valuable. None of which will affect 99.999% of the population.

Re: New York to tax luxury second homes in NYC

#49

Post by giantg2 »

bryanlarsen wrote: post #39
giantg2 wrote: post #32

Earlier quoted context omitted.

"seeing the ultra rich paying far less taxes then they are." Is this actually true? I thought looking at the aggregates that the top 10% pay something like 1/3rd of all income/cap gain taxes.

Top 10% is the upper middle class, not the ultra rich. A successful surgeon making $1M per year is paying well over 40% a year in taxes, while Bezos is paying 1%.

Do you have the data for that? I was wondering about tax paid (as dollars not effective rate- I know effective tends to me lower for HNW individuals due to accountants and other financial professionals they can afford).

Re: New York to tax luxury second homes in NYC

#50

Post by dwa3592 »

giantg2 wrote: post #32
jmclnx wrote: post #7

> an initiative to appease Mayor Zohran Mamdani and liberal voters Taxing the rich is not a Liberal thing, but the Rich is calling it that because they do not want to pay any taxes at all. He was elected because people are starting to feel real pain and seeing the ultra rich paying far less taxes then they are. If it was up to me, I would tax all the second homes above 5 million USD and add a Luxury Tax on all valuab…

"seeing the ultra rich paying far less taxes then they are." Is this actually true? I thought looking at the aggregates that the top 10% pay something like 1/3rd of all income/cap gain taxes.

Last year year Jeff bezos and I both paid taxes for the year of 2024. The percentage he paid on the money he made is far less than I did. I gave higher share of my income to the government than he did. Bezos's true tax rate was less than 1% and mine was around 25%.

Link - https://itep.org/washington-post-rich-not-paying-fair-share/

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