New York City wants one, and The Wall Street Journal, among a host of other folks, think it’s a terrible idea.
The idea is what the politicians are calling a pied-à-terre tax—which is French for “give me your money, fat cat.”
I’m not sure I agree with the WSJ. I see the pied-à-terre tax as a vast boon to New Yorkers, and to others.
a Journal analysis this week suggested it could crash New York’s luxury property market.
There actually are strong upsides to this tax. Fewer of New York’s rich folks will be hurt by the SALT cap on Federal income tax deductions as they leave this high and higher tax State for better States.
To the extent the WSJ‘s analysis is accurate, the luxury property market’s crash will have cascade effects that will make all housing property cheaper—and more affordable—for middle- and lower-class folks in New York at large as well as in New York City. And that will have its own knock-on effect: even fewer people impacted by the SALT cap.
I’m having trouble seeing the downside to NYC’s pied-à-terre tax.