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Wealth follows an extreme power law. This tax is pennies to those who will pay it.
New York passes pied-a-terre tax
51–60 of 459 posts
Re: New York passes pied-a-terre tax
#52Earlier quoted context omitted.
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Sure yeah, all those middle class families with second homes in New York City. Right.
Nobody affected by this is middle class. Nobody that will be affected by this in the next 20 years would be considered middle class by any rational measure.
Re: New York passes pied-a-terre tax
#53I'm really curious about this. Wont, as a rule, any super-rich 2nd, 3rd, and 4th homes in New York be completely unaffordable for almost everyone? It feels a bit like you're potentially spreading around the super-luxury homes across a wider breadth of the super-rich, but not much else. Is there a better way to think about this?
For startets, the revenue raised makes NYC as a city more sustainable by funding social programs for the normal people who keep the lights on.
Thanks, I feel sort of stupid for failing to notice that it would if nothing else just increase tax revenue. I was stuck in a perspective that this was about increasing housing stock.
Re: New York passes pied-a-terre tax
#54[flagged]
Re: New York passes pied-a-terre tax
#55I'm really curious about this. Wont, as a rule, any super-rich 2nd, 3rd, and 4th homes in New York be completely unaffordable for almost everyone? It feels a bit like you're potentially spreading around the super-luxury homes across a wider breadth of the super-rich, but not much else. Is there a better way to think about this?
Yes. A tax on the ultra-wealthy, rather than a measure aimed at increasing housing.
Its very roundabout as NYC can only make taxes for NYC, but the net aim is to increase the effective tax rate for the ultra-wealthy, using secondary property as a proxy for that.
Edit: AND WE (I) LIKE THIS because progressive taxation is the core play of fixing income/wealth inequality
Re: New York passes pied-a-terre tax
#56I'm really curious about this. Wont, as a rule, any super-rich 2nd, 3rd, and 4th homes in New York be completely unaffordable for almost everyone? It feels a bit like you're potentially spreading around the super-luxury homes across a wider breadth of the super-rich, but not much else. Is there a better way to think about this?
It's for generating more tax revenue.
Re: New York passes pied-a-terre tax
#57Property tax is the workable wealth tax. There's no such thing as a perfect policy, but in the context of NYC this seems worth trying. I'll be interested to see if it helps create some liquidity in the housing market (the goal), or if it only functions as revenue source. One wrinkle I haven't heard much discussion of -- cities respond to incentives too. NYC is a global destination for the mega wealthy. If it turns ou…
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...of property taxes on second homes valued > $1M?
Re: New York passes pied-a-terre tax
#58This seems like a no-brainer. Tax 10-15k ultra wealthy people who park their cash in second homes in exchange for ~$500M/year in revenue.
Re: New York passes pied-a-terre tax
#59Property tax is the workable wealth tax. There's no such thing as a perfect policy, but in the context of NYC this seems worth trying. I'll be interested to see if it helps create some liquidity in the housing market (the goal), or if it only functions as revenue source. One wrinkle I haven't heard much discussion of -- cities respond to incentives too. NYC is a global destination for the mega wealthy. If it turns ou…
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What do you mean? It's not a tax on commercial property.
One effect might be that wealthy non-residents prefer to stay in a hotel when they visit New York? The amount of money being collected as property tax would pay for a very fancy suite.
I imagine there will be luxury hotel conversions.
Re: New York passes pied-a-terre tax
#60Property tax is the workable wealth tax. There's no such thing as a perfect policy, but in the context of NYC this seems worth trying. I'll be interested to see if it helps create some liquidity in the housing market (the goal), or if it only functions as revenue source. One wrinkle I haven't heard much discussion of -- cities respond to incentives too. NYC is a global destination for the mega wealthy. If it turns ou…
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Who is the "consumer" in this case?