Below is an expanded version of my column in the New York Post on the Hochul/Mamdani special fee to be imposed on luxury property owners in New York. The new fee comes on top of property taxes and assessments. It is just one of the wealth taxes that Democrats are pushing in various states — and pushing out wealthy taxpayers and businesses.
Here is the column:
The hunt is on.
New York City Mayor Zohran Mamdani used Tax Day to announce a new fee targeting wealthy people who still linger in the city after moving their primary residences to other states.
The tax, called pied-à-terre (or “foot on the ground”) is designed to hit people who still maintain high-value properties in the city. It is a remarkably moronic effort to ensure that wealthy people cut all ties with the city. However, Gov. Kathy Hochul has yielded to the far left and joined the effort.
Mamdani, a socialist who supports the “decommodification” of private property, is seeking major tax increases, including a 10% property tax, to fund his pledges for free buses, city-run stores, and other policies.
He will need it. Mamdani not only recently admitted that he cannot fulfill his pledge for free buses this year, but that he will only build the first of five promise city-run stores next year at the cost of $30 million — almost half of what he set aside for all five promised stores.
The new measure would add a fee to existing taxes for owners of high-value properties worth more than $5 million.
Mamdani declared the new fee part of “Happy Tax Day,” which will generate $500 million more to “help fund things like free child care, cleaner streets, and safer neighborhoods.”
He is also pushing Hochul to increase taxes on the 33,000 New Yorkers earning more than $1 million annually as well as those corporations that have not left the state. Other blue states from Washington to Virginia are moving toward similar millionaire taxes.
The move is consistent with other blue states seeing the same exodus of wealthy taxpayers and businesses due to the rising budgets and tax burdens. Rather than seeking to make their states magnets for investment, California and other states are pursuing retroactive wealth taxes and so-called “Teddy Bear laws” that refuse to recognize changes of residency.
New York has used its “Teddy Bear” regulations to declare that people who fled to other states are still residents subject to taxation because of the location of their sentimental attachments in New York (like a Teddy Bear) from pets to children.
In my new book, “Rage and the Republic,” I discuss these taxes and how they are the final stage of economic atrophy for states like New York. Politicians like Hochul cannot muster the courage to face bloated budgets, excessive union pension contracts, and runaway spending. In other words, it is too difficult to create a state that draws investment and residents like so many red states. Instead, they are chasing the remaining wealthy people who still maintain contacts with the state.
The result is a form of economic Darwinism in which the herd of wealthy taxpayers is thinned further by capturing the slowest or most nostalgic individuals.
The irony is that Hochul and Mamdani are working to cut the final ties of these former residents, convincing them that they are viewed as parasites to be pursued relentlessly for more taxes.
In Rage and the Republic, I discuss these efforts as a dangerous form of “economic factionalism,” a popular tactic historically used by demagogues to curry public favor by vilifying the wealthy.
Mandani denounced those who “store their wealth in New York City real estate [and] reap the huge financial rewards” while “hurt[ing] working New Yorkers.”
This is evident in the renewed claims of figures such as Sen. Elizabeth Warren (D., Mass.), who used Tax Day to renew calls for her unconstitutional wealth tax.
Warren posted on X that “It’s time to make the ultra-wealthy pay their fair share. It’s time to pass a wealth tax.”
Socialist Vermont Sen. Bernie Sanders also made the same claim. In a Guardian op-ed, Sanders cited shocking figures claiming that Elon Musk pays a tax rate of only 3.3% while Jeff Bezos pays less than 1%.
The claim comes from the dubious source ProPublica, which performs a statistical sleight of hand. In reality, the publication shows that figures like Jeff Bezos paid $973 million in taxes on income of $4.22 billion. That is a 23% tax burden, not less than 1%. Musk paid 30% with a $455 million tax bill.
The top 1% of taxpayers in this country paid roughly 40% of all taxes. The top 5% pays over 40% of taxes.
The Democrats are committed to economic factionalism as a strategy for the midterm elections. It is a major driver of the rage politics that many hope will allow them to regain power in November. It will come at a great cost to states like New York.
Hochul and Mamdani can hunt down the remaining wealthy taxpayers lingering in their state. In the end, it will not generate nearly as much revenue as it will cost as residents and businesses look elsewhere for position living and business environments.
The best way to improve the standard of living in these states is to improve their economies and tax bases. Instead, blue states like California and New York are raising costs across the board, including through pushes for a $ 30-per-hour minimum wage. In California, the massive increases in the minimum wage have already resulted in substantial job losses and business closures.
It is unlikely that many wealthy individuals will stick around to experience what Mayor Mamdani calls “the warmth of collectivism.” Instead, it will be average New Yorkers who are burned by his “eat the rich” policies.
Short Tern Gain with Long Term Pain – Sums it up nicely for NYC!!! By 2030 that place will be a 1984 Poster Child.
It should be called The Laugher’s Curve
Once you reach a certain level taxing the rich, they laugh and say, “Bye-Bye”.
Democrats are fascists set on destroying western society
End all federal aid and outlaw public unions
Destroy them
Reminder Germany voted for Hitler
Voting democrats means hate America. That is clear
I have to say these people who raise or pitch these taxes are economic and historical illiterates because they seem oblivious to the fact that all these types of taxes keep being tried elsewhere and fail by reducing the incomes of the states and cities that use them and then they get revoked by the survivors. Wealth taxes have failed in Europe and been revoked because those subject to them just move. Inordinate raises of the minimum wage was predicted to cause layoffs in the cities that have used them and then the layoffs happen and suddenly you order food at a kiosk and it’s made by a machine and you see no human.
About the only point of discussion left is whether you tip the machine.
Actually these politicians are just lazy and just won’t invest in the footwork, research, citizen input about ways to get things done more efficiently or with new ideas. Or sometimes recognize that a program was a failure and should be stopped. Or maybe really push to see where and to whom the money goes. After seeing the seeming billions of dollars lost to corruption in several states and cities, it would seem to be the first place to look for money wasted.
Florida does not succeed just because their taxes are low. You have a governor who gets things done. Before Desantis, Jeb Bush was also a highly effective governor. Abbot in Texas is also effective and there have been democratic governors in the past who were effective as well as mayors. Those are the leaders. Raising taxes is easy, accomplishing something beneficial to a society is hard work, and few people or leaders want to put in the effort.
It can be like building a company. You have to offer something better, improve efficiency , expand an expertise, maybe make a product better but cheaper. Hard work. Sometimes the option to raise the price is not there so you have to do better in some other way. You gotta look for those options and some may fail but your company fails if you don’t do the work, same for a city or state.
The good professor doesn’t seem to care that such obvious typos in his columns diminish the credibility of his underlying points. Or that the constant references to his new book do the same.
Sad. Wise up Professor.
Typo = lack of Credibility? Seriously/ And you have credibility considering your poorly punctuated comment?
W_T_F is it with you geriatrics? You waste an entire day here shitting on each other out or boredom target b_s and now s-h-i-t on Turley for typos? Seriously?
What’s wrong with you little snot nosed pusscake soy boys? Show some respect for seasoned men of accomplishment.
You an English major
Values Style over Substance?
Wiseoldlawyer, I think I agree with you about 95% of the time but you are off the mark with this comment. Sure the typos get caught in my throat and yes, Turley does hype his book a lot, but that is a tiny price to pay for this great site that has no ads, isn’t paywalled and allows comments. It is the Anonymous creeps that harm the site, not a few typos and a daily book hype.
Come on man, lighten up, you are better than this.
Typos and book references: “. . . diminish the credibility . . .”
Only to ingrates.
Hochul’s name is spelled wrong in the title.
The anonymous economic illiterates that populate these comments will be overjoyed today.
That comment exposes your economic illiteracy.
I think that Mamdani is an economics’ illiterate and therefore completely unqualified to govern, but Hochul is a political opportunist, who those New Yorkers that don’t bother to vote well deserve. New York and California are now bankrupt intellectually as,well as financially. New York City, Los Angeles, and San Francisco will now revert to the status of “formerly great places to live and work.”
As someone from upstate NY, no matter if every person north of Albany voted republican, we could not produce enough votes to counter the mass of morons down state. We are, virtually, held prisoner to that seething mass of ideologues and parasites.
Please correct the statistic given
“ The top 1% of taxpayers in this country paid roughly 40% of all taxes. The top 5% pays over 40% of taxes”
You’re right. It should be 60% by the top 5.
Another economic illiterate raises his ignorant head for recognition.
Facts are stubborn things
I defended this site and it’s typos above, but that sentence made no sense to me too.