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politics33m ago
Penthouse pieds-à-terre: Bezos, Trump, and other billionaires facing Mamdani's proposed tax
- New York proposes a pied-à-terre tax on luxury second homes over $5 million, aiming to raise up to $500 million annually.
- Mayor Zohran Mamdani and Governor Kathy Hochul frame the tax as a revenue tool targeting non-resident luxury owners.
- The plan would apply to properties owned abroad, in other states, and in-state investments, including through trusts or LLCs.
- Executives named include Jeff Bezos and Ken Griffin, with other billionaires also noted as potential targets.
- Real estate leaders warn the tax could suppress investment and hurt construction and housing activity.
- Experts are divided: some see revenue benefits, others fear negative downstream effects on housing markets.
- The plan targets roughly 13,000 properties according to Hochul's office estimates.
- Proponents argue the tax aligns NYC's tax system with its growing wealth and funds public services.
- Critics advocate exploring alternatives like reducing unoccupied properties rather than broad wealth targeting.
- The policy is part of a broader push in NYC to tax the rich and fund city needs.
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