NY could neutralize a lot of opposition to the pied-a-terre tax by allowing a credit for it against income tax, so that the tax is limited to people who really don’t contribute fiscally. Would cut into revenue yield but some of that could be offset with rate adjustments.
Do you have a view on what is the revenue maximizing income tax rate for NYS/NYC?
Gov. Hochul’s proposed tax on pricey 2nd homes in NYC raises constitutional issues. If limited to non-NYC residents, it violates the privileges and immunities clause. If not, there’s no exemption for people who pay the steep NYS/NYC income tax.
To be fair, the IRS metric wasn’t very useful. Of course, they could have waited for the new metric before spiking it.
All true. But remember that, unlike the Israelis and Iranians,Trump doesn’t care about the substance of the ultimate resolution, only the perception that his unique talents led to a great deal for the US. The high-profile blustering may help him in this regard after he concedes the substance.
What process determines the Chair of the Open Market Committee, which makes monetary policy? I thought the committee picks its own chair, who by tradition is the Chair of the FRB.
If Dems win the presidency in 2028, dealing with the tariffs will be a major headache. Do you let Congress roll them back and claim credit for the revenue gain? Does POTUS just do it?
Excellent piece.
Doubt the elasticity is constant across such a wide price range.
Similarly, a lot of revenue can be raised by changing Treasury regulations to eliminate loopholes used by the wealthy and large corporations. Much easier than trying to pass legislation to tax the rich.
I get the politics of Dems proposing large middle class tax cuts. But by far the best tax cut in terms of tax policy is repealing the tariffs, which can be done with Executive action and avoids the messiness of budget reconciliation.
Bloomberg to Back Protégé in Crowded N.Y.C. House Race With Super PAC www.nytimes.com/2026/03/12/n...
Good news for Micah Lasher. IMO, he’s the most substantive candidate in the race. Our district needs a workhorse in Congress, not a show horse.
Didn’t realize you were such a big fan of tax shelters. Combining interest deductions with expensing creates huge tax losses. Would lead to many economically inefficient protects. Study the housing boom and bust in the 1980s.
These Republican Senators don’t appear to find the Senate a very appealing place to work. Daines is quitting a safe seat. Mullin is leaving for what, under Trump, is probably the worst job in the Executive Branch—taking orders from Stephen Miller.
Not sure indexing does much to solve the problem. That $10 trillion probably has pretty low tax basis.
100 years ago today, President Coolidge signed the Revenue Act of 1926. A bad bill, but it established the Joint Committee on Taxation. So today we celebrate a century of the JCT staff’s providing non-partisan advice to Congress on tax law and policy.
Not such great odds after taxes when the bet requires that you trust Kalshi.
Might see a bigger gap between labor productivity growth and total factor productivity on account of AI’s being so capital intensive.
Gets trickier with multiple jurisdictions on account of fiscal externalities.
I predict that many of the large retailers will announce that they’re cutting prices in line with their tariff refunds. How much actual relief that provides is, of course, problematic.
Mamdani’s threat to raise property taxes if the state doesn’t do what he wants is certainly an innovative approach to state-city relations. The state will just say “Be my guest.”
For a while, I thought that secular stagnation and negative real interest rates might be the answer. Doesn’t look likely anymore. There’s the old Herb Stein aphorism—if something can’t go on forever, it won’t. That’s what bothers me.
What’s the basis for your dovishness? That our budget posture is sustainable? If not, that Congress will address it before a crisis? That if Dems are more hawkish than Rep’s, we’ll be taken to the cleaners in negotiations? That a crisis can be weathered without undue damage? Not sure I get it.
I’m a NY patriot, so I care about how the proposal would affect NY revenue. If CA billionaires move to NY, that’s good. If they sell stock to pay the tax and drive down prices, that’s bad.
Taxpayers can spread payments over 5 years by paying a 7.5% interest rates. The rate is too high—billionaires can borrow at much lower interest rates.
The effective tax rate can be higher than 5% if people sell appreciated assets to pay the wealth tax—as high as 8% for assets with a zero tax basis.
The tax allows a deduction for liabilities. An important liability for many people is the future tax liability for such assets as IRAs, 401(k)s, or unrealized capital gains. How to calculate this liability is not a simple problem and would require some rough justice rules.
A short thread giving some random thoughts about the CA 5% wealth tax proposal on billionaires.
One issue is that CA can’t commit to imposing it only once, so rich taxpayers may leave for fear of a tax that never happens. An estate tax avoids this—you only die once.
This endorsement means so much to me. Jerry Nadler has set an incredibly high bar for decades for smart, principled, progressive leadership on issue after issue. I’m honored beyond
words to have his support.
www.youtube.com/watch?v=_UH1...
@nadler.house.gov has been a principled, effective leader – holding Trump accountable, defending civil rights, and fighting for New York families. I’m honored to have his endorsement—and ready to continue the fight.