{"id":206328,"date":"2026-04-22T19:01:16","date_gmt":"2026-04-22T19:01:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/206328\/"},"modified":"2026-04-22T19:01:16","modified_gmt":"2026-04-22T19:01:16","slug":"mamdani-and-hochul-propose-a-nyc-wealth-tax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/206328\/","title":{"rendered":"Mamdani and Hochul propose a NYC wealth tax."},"content":{"rendered":"<p>I&#8217;m Isaac Saul, and this is Tangle: an independent, nonpartisan, subscriber-supported politics newsletter that summarizes the best arguments from across the political spectrum on the news of the day \u2014 then \u201cmy take.\u201d<\/p>\n<p>Are you new here?\u00a0<a href=\"https:\/\/www.readtangle.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Get free emails<\/a>\u00a0to your inbox daily. Would you rather listen? You can find our podcast\u00a0<a href=\"https:\/\/shows.acast.com\/66510864c0852400122bc7be?ref=readtangle.com\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">here<\/a>.<\/p>\n<p>Today\u2019s read: 14 minutes.<\/p>\n<p>\ud83c\udfd9\ufe0f<\/p>\n<p>The new tax would apply to residences valued at over $5 million owned by people who do not primarily live in New York City. Plus, what are the origins of Earth Day? <\/p>\n<p>Get more from Tangle!<\/p>\n<p>We try to make opening every newsletter exciting, and today we\u2019re adding a little extra excitement with a special membership offer: A 25-hour window to get <a href=\"https:\/\/www.readtangle.com\/25-for-25\" class=\"cta-link-color\" rel=\"nofollow noopener\" target=\"_blank\">25% off our yearly subscription bundle<\/a>. We\u2019re calling it our \u201c25 for 25\u201d sale. That\u2019s ad-free newsletters, ad-free podcasts, and every single piece of members-only content we\u2019ve ever published in the past and will publish in the future \u2014 Friday editions, Sunday editions, special interviews, podcasts, transcripts, Press Pass, and more. You unlock everything, all for just $6.25\/month for the first year. But it all expires at 1 PM ET tomorrow. <a href=\"https:\/\/www.readtangle.com\/25-for-25\" class=\"cta-link-color\" rel=\"nofollow noopener\" target=\"_blank\">Grab it here<\/a>.\u00a0<\/p>\n<p>Quick hits.President Donald Trump said he is extending the ceasefire with Iran \u201cuntil such time as their leaders and representatives can come up with a unified proposal,\u201d adding that the U.S. blockade of Iranian ports will also continue. Earlier on Tuesday, the president had suggested he opposed extending the ceasefire. (<a href=\"https:\/\/thehill.com\/policy\/international\/5841910-trump-extends-iran-ceasefire\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The announcement<\/a>) Separately, Iranian state media reported that Iran seized two container ships in the Strait of Hormuz on Wednesday, claiming the ships were operating without required permits. (<a href=\"https:\/\/www.washingtonpost.com\/world\/2026\/04\/22\/hormuz-strait-us-iran-talks-war\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The seizures<\/a>)Virginia voters approved an amendment to the state constitution allowing legislators to proceed with redrawing the state\u2019s congressional map for the remainder of the decade. The change, which passed with 51.6% support, is expected to result in 10 Democratic districts out of 11. (<a href=\"https:\/\/www.nbcnews.com\/politics\/2026-special-elections\/virginia-ballot-measures?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The results<\/a>)Kevin Warsh, President Trump\u2019s nominee for Federal Reserve chair, testified before the Senate Banking Committee, telling lawmakers that he viewed the central bank\u2019s independence as \u201cessential\u201d and that the president had not pressured him to push for lower interest rates. (<a href=\"https:\/\/finance.yahoo.com\/economy\/policy\/live\/fed-confirmation-hearing-live-kevin-warsh-faces-senate-lawmakers-214813901.html?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The hearing<\/a>)Rep. Sheila Cherfilus-McCormick (D-FL) resigned from the House shortly before the chamber\u2019s Ethics Committee gathered to discuss sanctions for multiple campaign finance violations. Cherfilus-McCormick is also charged with stealing $5 million in Covid-19 disaster relief funds. She is the third House member to resign since April 13. (<a href=\"https:\/\/www.cnbc.com\/2026\/04\/21\/sheila-cherfilus-mccormick-resigns-congress.html?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The resignation<\/a>)\u00a0The Justice Department indicted the Southern Poverty Law Center (SPLC), a civil rights organization, on 11 counts, including defrauding donors. The organization allegedly paid members of neo-Nazi groups millions of dollars to act as informants for a now-defunct program to monitor threats from extremist groups, an effort the Justice Department said was concealed from donors. The SPLC denied any wrongdoing and said it was being targeted for political reasons. (<a href=\"https:\/\/www.wsj.com\/us-news\/southern-poverty-law-center-charged-with-financial-crimes-70e84c13?eafs_enabled=false&amp;ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The indictment<\/a>)<\/p>\n<p>22 Things To Cut When Living\u00a0On\u00a0Retirement (Many People Ignore #11)<\/p>\n<p>Whether you\u2019re already enjoying retirement or just eyeing the exit ramp, the math of a fixed income can feel like a daunting puzzle. The rising cost of living often turns &#8220;relaxing&#8221; into &#8220;calculating,&#8221; but your <a href=\"https:\/\/financebuzz.com\/money-moves-cut-on-retirement-yaez?utm_source=tangle&amp;utm_medium=paid-newsletter-cpf&amp;utm_term=Tangle&amp;utm_campaign=BM-FBZ-Tangle-money-moves-cut-on-retirement-yaez-CPF&amp;adgroupid=BM-Tangle-money-moves-cut-on-retirement-yaez-CPF-04222026\" rel=\"noreferrer nofollow noopener\" class=\"cta-link-color\" target=\"_blank\">golden years<\/a> shouldn\u2019t be defined by what you\u00a0can\u2019t\u00a0do.<\/p>\n<p>The good news? <\/p>\n<p>You don\u2019t need a radical lifestyle overhaul to find breathing room. Often, it isn&#8217;t the big-ticket items that drain a nest egg; it\u2019s the steady drip of outdated services and <a href=\"https:\/\/financebuzz.com\/money-moves-cut-on-retirement-yaez?utm_source=tangle&amp;utm_medium=paid-newsletter-cpf&amp;utm_term=Tangle&amp;utm_campaign=BM-FBZ-Tangle-money-moves-cut-on-retirement-yaez-CPF&amp;adgroupid=BM-Tangle-money-moves-cut-on-retirement-yaez-CPF-04222026\" rel=\"noreferrer nofollow noopener\" class=\"cta-link-color\" target=\"_blank\">inefficient accounts<\/a>. <\/p>\n<p>Efficiency isn&#8217;t about deprivation \u2014 it&#8217;s about intentionality.<\/p>\n<p>Our partner, FinanceBuzz curated a list of simple cutbacks and financial tools to help you reclaim your budget for what actually matters. <\/p>\n<p><a href=\"https:\/\/financebuzz.com\/money-moves-cut-on-retirement-yaez?utm_source=tangle&amp;utm_medium=paid-newsletter-cpf&amp;utm_term=Tangle&amp;utm_campaign=BM-FBZ-Tangle-money-moves-cut-on-retirement-yaez-CPF&amp;adgroupid=BM-Tangle-money-moves-cut-on-retirement-yaez-CPF-04222026\" rel=\"noreferrer nofollow noopener\" class=\"cta-link-color\" target=\"_blank\">Check out\u00a0the\u00a0list<\/a>.<\/p>\n<p>Today\u2019s topic. <\/p>\n<p>A wealth tax proposal in New York City. On Wednesday, April 15, New York City Mayor Zohran Mamdani (D) and New York Gov. Kathy Hochul (D) <a href=\"https:\/\/www.nyc.gov\/mayors-office\/news\/2026\/04\/mayor-mamdani--governor-hochul-announce-state-s-first-pied-a-ter?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">proposed<\/a> a pied-\u00e0-terre tax, an annual surcharge on New York City residences valued above $5 million owned by those who primarily live outside the city. Mamdani and Hochul claim the measure would raise $500 million in annual revenue to help address the city\u2019s budget shortfall; if enacted, it would be the first pied-\u00e0-terre tax in New York\u2019s history.\u00a0<\/p>\n<p>Back up: Mamdani was elected mayor in 2025 on a platform featuring <a href=\"https:\/\/drive.google.com\/file\/d\/14-aM9DKG337SDMilmfQtLRR-pDwyWSTc\/view?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">several proposals<\/a> to increase taxes on the city\u2019s wealthy residents to help pay for improved public services, including an increase in the state corporate tax rate and a two-percentage-point rate hike on residents making over $1 million per year. However, he has not proposed a tax on pied-\u00e0-terres (a term for luxury vacation homes) until now. Several countries have <a href=\"https:\/\/fiscalpolicy.org\/wp-content\/uploads\/2019\/03\/Pied-a-Terre-FPI.pdf?ref=readtangle.com#page=4\" rel=\"nofollow noopener\" target=\"_blank\">imposed<\/a> versions of this tax.\u00a0<\/p>\n<p>The press release from the mayor\u2019s office said, \u201cThe measure targets ultrawealthy out-of-city residents and global elites who use New York City real estate as a vehicle for wealth storage rather than as homes.\u201d The release and a <a href=\"https:\/\/x.com\/NYCMayor\/status\/2044508902809628760?s=20&amp;ref=readtangle.com\" rel=\"nofollow\">video<\/a> from Mamdani promoting the idea both singled out hedge fund manager Ken Griffin\u2019s $238 million pied-\u00e0-terre in Manhattan as an example of the tax\u2019s targets.<\/p>\n<p>Later that day, Mamdani <a href=\"https:\/\/www.nbcnews.com\/politics\/politics-news\/nyc-mayor-zohran-mamdani-relationship-trump-rcna340810?ref=readtangle.com#:~:text=%E2%80%9CA%20pied%2Da%2Dterre%20tax%20has%20been%20something%20that%20has%20long%20been%20fought%20for%20in%20the%20city%20but%20hasn%E2%80%99t%20been%20possible%20to%20get%20over%20the%20finish%20line.%20It%E2%80%99s%20been%20really%20exciting%20to%20work%20with%20the%20governor%20to%20win%20something%20that%20many%20thought%20would%20never%20have%20a%20chance%2C%E2%80%9D%20Mamdani%20added.\" rel=\"nofollow noopener\" target=\"_blank\">said<\/a> the plan is a step toward a key campaign promise to raise taxes on the wealthy. \u201cI always said that I believed in the importance of taxing the rich. This is taxing the rich,\u201d he said. \u201cA pied-\u00e0-terre tax has been something that has long been fought for in the city but hasn\u2019t been possible to get over the finish line.\u201d\u00a0<\/p>\n<p>By law, the mayor is <a href=\"https:\/\/www.nytimes.com\/2026\/03\/25\/nyregion\/mamdani-budget-cuts.html?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">obligated<\/a> to address the city\u2019s budget deficit, which totals approximately $5.4 billion. While the tax would only address a portion of that shortfall, Mamdani and Hochul say it would help the city move toward that goal without having to enact large-scale cuts to social services. The Democratic-majority state legislature must pass the tax as part of the state budget currently being negotiated, but Democratic leaders in the state House and Senate <a href=\"https:\/\/www.wsj.com\/politics\/policy\/new-york-governors-proposed-pied-a-terre-tax-gains-momentum-e8953641?eafs_enabled=false&amp;ref=readtangle.com#:~:text=When%20asked%20about,New%20York%20City.\" rel=\"nofollow noopener\" target=\"_blank\">responded favorably<\/a> to the announcement.\u00a0<\/p>\n<p>Critics of the plan \u2014 and wealth taxes more generally \u2014\u00a0<a href=\"https:\/\/x.com\/BillAckman\/status\/2044793786178449696?ref=readtangle.com\" rel=\"nofollow\">say<\/a> the measure would impose undue burdens on wealthy New Yorkers who already pay high taxes and whose presence in the city contributes to its economy in myriad ways. Others warned that the plan could drive wealthy residents out of the city, while luxury real estate groups <a href=\"https:\/\/www.wsj.com\/politics\/policy\/new-york-governors-proposed-pied-a-terre-tax-gains-momentum-e8953641?eafs_enabled=false&amp;ref=readtangle.com#:~:text=The%20city%E2%80%99s%20real,Real%20Estate%20Association.\" rel=\"nofollow noopener\" target=\"_blank\">claimed<\/a> it would hurt the industry.\u00a0<\/p>\n<p>Today, we\u2019ll share views from the left and right on the pied-\u00e0-terre tax proposal and the \u201ctax the rich\u201d movement. Then, Managing Editor Ari Weitzman gives his take. <\/p>\n<p>What the left is saying.Most on the left support the tax, calling it a prudent way to raise government revenue.Some say the measure rightfully targets the ultra-wealthy\u2019s excess.Others frame the tax as a win for Mamdani and the democratic socialist movement.\u00a0<\/p>\n<p>The New York Daily News editorial board called the measure <a href=\"https:\/\/www.nydailynews.com\/2026\/04\/16\/the-right-tax-mamdani-and-hochul-meet-in-middle-with-pied-a-terre-tax\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">\u201cthe right tax.\u201d<\/a><\/p>\n<p>\u201cMayor Mamdani wanted the state to impose higher income taxes and corporate taxes and Gov. Hochul is wisely offering him a pied-\u00e0-terre tax. He is smart to take it. He should now also drop his calls for the other tax hikes,\u201d the board wrote. \u201cIf a perennial concern with progressive taxation is the potential of driving well-off New Yorkers out of the city, this policy threads that needle by targeting people who are, by definition, not full-time New Yorkers. The people who have bought second homes or investment properties in New York City have done so precisely because it is the city that it is \u2014 a global hub of business and culture \u2014 meaning that an extra tax bump is something they\u2019ll eat happily.\u201d<\/p>\n<p>\u201cWealthy people with homes they own that they don\u2019t use a majority of the time, from Trump to Russian oligarchs to Gulf royals to more ordinary folks, enjoy and benefit from the enormous services and amenities that the city offers, and their properties are only worth what they\u2019re worth as a result of the vibrancy created by the community around these properties, a community that needs the investment taxes can allow,\u201d the board said. \u201cPlus, it\u2019s only fair that if they\u2019re spending a significant chunk of their time not contributing to local economic activity and avoiding state and local taxes, then they can pay a little bit more on their assets to even things out.\u201d<\/p>\n<p>In USA Today, Sara Pequen\u0303o argued <a href=\"https:\/\/www.usatoday.com\/story\/opinion\/columnist\/2026\/04\/18\/mamdani-tax-second-homes-new-york-housing\/89658792007\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">\u201cMamdani\u2019s pied-a\u0300-terre tax proves you really can tax the rich.\u201d<\/a><\/p>\n<p>\u201cWhile progressives are celebrating the implementation of \u2018tax the rich\u2019 policies, others are losing their minds over the possibility of people paying a tax on their multimillion dollar vacation homes and investment properties,\u201d Pequen\u0303o wrote. \u201cIt\u2019s hilarious that some netizens are so willing to go to bat for the wealthiest people in the world who are driving up the cost of housing in New York City \u2014 especially those who don\u2019t live here\u2026 why shouldn\u2019t the ultrawealthy people who can afford a vacation home here have to pay for it?\u201d<\/p>\n<p>\u201cIt doesn\u2019t seem to be the rich who can afford second homes being priced out of New York City \u2014 it\u2019s the people who were raised here who can no longer afford to call the city home,\u201d Pequen\u0303o said. \u201cMore than 125,000 non-Hispanic Black residents have left the city over the past 20 years, according to a 2023 analysis from Gothamist, due in part to the city\u2019s affordability crisis. Meanwhile, the number of millionaires in the city has grown by 45% over the past decade to nearly 385,000.\u201d<\/p>\n<p>In Jacobin, Liza Featherstone said the tax is <a href=\"https:\/\/jacobin.com\/2026\/04\/zohran-tax-rich-hochul-nyc?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">\u201ca victory for Zohran Mamdani and the socialist movement.\u201d<\/a>\u00a0<\/p>\n<p>\u201cThe announcement is a real victory for the socialist left and would never have happened without its tireless organizing to elect Mamdani, nor would it have happened without the campaign to \u2018tax the rich,\u2019 which has continued since he\u2019s been in office, as New Yorkers have rallied, lobbied, and relentlessly dogged the governor at public events,\u201d Featherstone wrote. \u201cAt the same time, the socialist movement is rightly viewing the new tax as a beginning rather than an end of a longer project of redistributing the city\u2019s staggeringly unequal wealth and of building a New York where everyone can thrive.\u201d<\/p>\n<p>\u201cIt\u2019s not too late to tax the rich more this year. Budget negotiations in Albany are not over; at present lawmakers are mired in discussion on climate policy, which Hochul wants to ignore, and car insurance, her favorite topic. So there\u2019s a long way to go before settling big questions of revenue,\u201d Featherstone said. \u201cThe Left will continue to demand more redistribution and revenue \u2014 income and corporate taxes.\u201d<\/p>\n<p>What the right is saying.The right strongly opposes the measure, with many arguing it is economically unsound.Some criticize Mamdani\u2019s \u201ctax the rich\u201d rhetoric.Others say the tax will drive away wealthy residents.\u00a0<\/p>\n<p>The Wall Street Journal editorial board explored <a href=\"https:\/\/www.wsj.com\/opinion\/kathy-hochul-pied-a-terre-tax-new-york-city-zohran-mamdani-7808a650?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">\u201ca New York tax on out-of-towners.\u201d<\/a><\/p>\n<p>\u201cThe details are still being worked out, but the Hochul administration says the goal would be to raise $500 million a year by taxing 13,000 homes. That\u2019s a big bite taken from a small number of people, who might easily decide that keeping a place in New York isn\u2019t worth the cost,\u201d the board said. \u201c\u2018They\u2019re part of our skyline, but those people are not part of our city,\u2019 [Hochul] said Wednesday. Got that, longtime Manhattan banker or law partner who now has a primary residence elsewhere? New York\u2019s Governor says you are not part of her city. Ms. Hochul\u2019s focus is supposed to be on improving the state so that they want to come back.\u201d<\/p>\n<p>\u201cAlbany debated the pied-\u00e0-terre idea in 2019, and there was concern it might crash the market for luxury properties. The tax rates in that proposal ranged from 0.5% on value above $5 million to 4% above $25 million. According to a Journal analysis, something like half of the revenue would have come from only 280 homes above the top threshold, with an average tax bill of $846,000. Their property values might have fallen by 46%,\u201d the board wrote. \u201cClass warfare is ugly as politics, but it\u2019s terrible as economics, and if New York drives away more wealth, voters won\u2019t like the result of living in a city that\u2019s downwardly mobile.\u201d<\/p>\n<p>The Free Press\u2019s editors argued <a href=\"https:\/\/www.thefp.com\/p\/mamdani-scapegoating-the-rich-wont?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">\u201cscapegoating the rich won\u2019t fill a $5.4 billion budget hole.\u201d<\/a><\/p>\n<p>\u201cEconomies stagnate when they\u2019re layered with policies that slowly sap their productivity and orderliness \u2014 some red tape on business here, budget cuts to policing there. That\u2019s what New York City Mayor Zohran Mamdani is risking with his latest tax proposal,\u201d the editors said. \u201cMamdani singles out billionaire financier Ken Griffin in the video, exclaiming the $238 million price tag of his penthouse and putting the building on camera. It\u2019s as if to say, There\u2019s the enemy, New Yorkers, looking down on you from his spare palace.\u201d<\/p>\n<p>\u201cThe heckling is akin to the current wave of \u2018eat the rich\u2019 progressivism, which is pushing Democrats everywhere to embrace wealth taxes, and has even turned deadly on the movement\u2019s fanatical fringe. Luigi Mangione\u2019s alleged murder of UnitedHealthcare\u2019s CEO appears to have been motivated by a similar kind of two-dimensional view of how the rich relate to the masses,\u201d the editors wrote. \u201cThe purpose of the tax may not be to pay for anything at all. By pushing it forward, Mamdani is keeping a promise to supporters via signaling. It\u2019s politically savvy, but economically risky.\u201d<\/p>\n<p>In City &amp; State New York, New York City Councilmember Joann Ariola (R) wrote <a href=\"https:\/\/www.cityandstateny.com\/opinion\/2026\/04\/opinion-im-not-millionaire-i-am-against-more-taxes-rich\/412831\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">\u201cI\u2019m not a millionaire, but I am against more taxes on the rich.\u201d<\/a><\/p>\n<p>\u201cThe highest tax bracket in New York is already shouldering nearly half of the income tax burden in the state. This is an enormous share and provides us with much-needed funding for an array of programs and public works,\u201d Ariola said. \u201cBut when the members of this tax bracket change their address and stop paying their income taxes to the Empire State, the government will be left with no other option than to push that burden down to the middle and working classes.\u201d<\/p>\n<p>\u201cIf we want to actually expand the tax base and bring more money into the city, we need to provide incentives for the wealthy to return. Because, as the numbers show, many of those with the means to do so will and are simply packing up and moving just across state lines, and this leaves the working classes and the middle-class civil servants who are too invested in the city to just up and leave shouldering the burden,\u201d Ariola wrote. \u201cEventually, if we keep adding more taxes, we will eventually run out of rich people\u2019s money.\u201d<\/p>\n<p>My take.<\/p>\n<p>Reminder: \u201cMy take\u201d is a section where we give ourselves space to share a personal opinion. If you have feedback, criticism or compliments, don&#8217;t unsubscribe. Write in by replying to this email, or <a href=\"https:\/\/www.readtangle.com\/nyc-wealth-tax-proposal\/#ghost-comments-root\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">leave a comment<\/a>.<\/p>\n<p>I support the idea of taxing out-of-state residents, but New York should be careful to avoid easy pitfalls.Local tax codes are complicated, and many wealthy property owners already pay a lot in taxes.If done well, this proposal could end up raising revenues while targeting only those who can afford to pay.<\/p>\n<p>Managing Editor Ari Weitzman: Tax policy is complicated, and Gov. Hochul and Mayor Mamdani\u2019s joint proposal is no exception. But by and large, I think this is a great idea in theory. Now, execution will be everything.<\/p>\n<p>I\u2019m a fan of progressive tax policies \u2014 taxing people who have more to pay feels very fair to me. I don\u2019t know if this policy will raise $500 million, and it doesn\u2019t solve the city\u2019s budget problems on its own, but I also don\u2019t think it will have the large problems a lot of the critics say it will. Remember, these are part-time residents who already demonstrated they will pay at least $5 million once and $60,000 in taxes every year to take advantage of what New York City has to offer; I doubt an additional $30,000 annually will meaningfully change the behaviors of people in that category.<\/p>\n<p>In fact, I <a href=\"https:\/\/www.readtangle.com\/trumps-housing-affordability-proposals\/#:~:text=Ultimately%2C%20I%20think,owning%20second%20homes.\" rel=\"nofollow noopener\" target=\"_blank\">called for<\/a> almost this exact policy in January when responding to President Trump\u2019s proposal to raise the tax rate on corporate investors, saying we should instead increase the tax rate on second homes \u2014 specifically at local levels. I argued that targets of such a policy should be \u201cvery wealthy people who already own and live in a primary residence but also own vacation properties that are often vacant in areas with housing shortages,\u201d adding that doing so would increase both revenue and supply (by acting as a disincentive to owning investment properties).<\/p>\n<p>I\u2019d been harboring this idea for a while, and after writing about it in Tangle, I got a lot of well reasoned pushback. Now that Mamdani and Hochul are considering doing this in the real world, I want to test the proposal against the pushback that I received.\u00a0<\/p>\n<p>First, this should only be considered a revenue-raising proposal to raise revenue, not one that will impact housing availability. When I pitched my idea to tax second homes, I optimistically stated that I could see people who buy up rental properties getting dissuaded from doing so or being motivated to rent them out. Counterarguments have convinced me that likely isn\u2019t the case. Second homes <a href=\"https:\/\/eyeonhousing.org\/2024\/10\/second-homes-by-congressional-districts\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">make up only 4%<\/a> of U.S. housing stock, a figure that is decreasing, and many of these properties are already rented out. Increasing taxes on them could have a marginal effect on encouraging more local home ownership, but it\u2019d likely contribute to raising rents (let\u2019s put a pin in that for now).<\/p>\n<p>Mamdani and Hochul are pitching this as a revenue-raising policy, so they\u2019re already ahead of me. Which brings me to the next point: Additional taxes on expensive second homes already exist to some degree.<\/p>\n<p>In Vermont, where I live, the state offers a homestead tax exemption for people who live in their primary residence. This means my home state already taxes second homes at a higher rate, they just frame it as a discount to residents of their primary homes. Vermont is not alone; <a href=\"https:\/\/www.assetprotectionplanners.com\/planning\/homestead-exemptions-by-state\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">37 other states<\/a> offer similar exemptions, including <a href=\"https:\/\/www.tax.ny.gov\/pdf\/publications\/orpts\/homestead.pdf?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">New York<\/a>. However, it is a marginal policy in the Empire State, only offering annual tax savings of <a href=\"https:\/\/access.nyc.gov\/programs\/school-tax-relief-program-star\/?ref=readtangle.com#how-it-works\" rel=\"nofollow noopener\" target=\"_blank\">$293<\/a> for most home owners. So while a similar policy in other states effectively is an extra tax on second-home owners, that\u2019s not true of New York.\u00a0<\/p>\n<p>But that doesn\u2019t mean that New York doesn\u2019t already tax these properties to a high degree. New York City divides its properties into <a href=\"https:\/\/www.lincolninst.edu\/app\/uploads\/legacy-files\/gwipp\/upload\/sources\/New%20York\/2014\/NY_2014_Residential_Property_Tax_Guide_Class_1_NYC_Depart_Finance_June_9_2015.pdf?ref=readtangle.com#page=4\" rel=\"nofollow noopener\" target=\"_blank\">four categories<\/a> \u2014 one-to-three unit residences, properties with more than three units, utilities, and all others. These properties are then taxed at different rates, complicating the existing tax policy.<\/p>\n<p>Class 1 properties (<a href=\"https:\/\/www.thetownhousespecialist.com\/taxes?ref=readtangle.com#:~:text=Class%201%3A%20Includes%20most%20residential%20property%20of%20up%20to%20three%20units%20(one%2D%2C%20two%2D%2C%20and%20three%2Dfamily%20homes%20and%20small%20stores%20or%20offices%20with%20one%20or%20two%20apartments%20attached)%2C%20vacant%20land%20that%20is%20zoned%20for%20residential%20use%2C%20and%20most%20condominiums%20that%20are%20not%20more%20than%20three%20stories.\" rel=\"nofollow noopener\" target=\"_blank\">basically single-family homes or small apartments<\/a>) are <a href=\"https:\/\/www.nyc.gov\/site\/finance\/property\/property-tax-rates.page?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">taxed<\/a> at 19.84%, while Class 2 properties (large rental buildings and investment condos) are taxed at 12.44%. However, Class 1 homes are taxed on only 6% of their value while Class 2 properties are taxed on 45% of their value, making the effective tax rate of these Class 1 properties much, much lower: ~1.2% of market value compared to ~5.6% of market value.<\/p>\n<p>That\u2019s a lot of numbers, so let\u2019s take an example. Say I own a $5 million, four-story brownstone in New York City. If I am the owner and occupant of that property, I am only assessed taxes on 6% of its value, or $300,000. My tax rate of 19.84% means I pay about $60,000 in taxes, an effective rate of ~1.2%. If I break that property into four units and rent them out, I am assessed taxes on 45% of the building\u2019s value, or $2.25 million. My tax rate of 12.44% means I pay about $280,000 in taxes, an effective rate of ~5.6%. That\u2019s a difference of well over $200,000.\u00a0<\/p>\n<p>But would the pied-\u00e0-terre tax apply to properties that are identified as Class 1, or Class 2? As it stands today, that would depend a lot on the individual property. If it\u2019s the former, then great \u2014 a surcharge on these properties can help raise revenues on a set of people that can afford it and who already aren\u2019t paying as much in taxes as a landlord of an average small building in New York City (a cost that gets distributed among the residents). But if it\u2019s the latter, then the surcharge essentially becomes a double tax on people who are already paying a great deal for their properties.<\/p>\n<p>So far, the pied-\u00e0-terre proposal isn\u2019t very specific on its application. I can understand that \u2014 it\u2019s early, and the proposal that eventually gets introduced to the legislature will have to fall somewhere between the catchy \u201ctax on $5 million homes owned by people who don\u2019t live here\u201d and the complicated reality of the existing tax code. But I hope is that the actual policy Hochul and Mamdani end up pitching looks something like this:<\/p>\n<p>Clarify the classification. Pied-\u00e0-terres owned by out-of-state millionaires and real-estate investors don\u2019t make sense as Class 1 properties, because these owners shouldn\u2019t receive the benefits intended for most home owners. However, pied-\u00e0-terres aren\u2019t a great fit as Class 2 properties, either, which is meant to encompass larger residences and apartment buildings. If a $10 million brownstone is in the same category as a 200-unit apartment building, then future changes to the tax code will either raise rents for the working class or keep taxes down for the rich. Instead, investment properties, pied-\u00e0-terres, and luxury apartments would be better suited in their own category.<\/p>\n<p>Tweak the rates, don\u2019t apply new charges. If these properties are simply put into their own bucket where the assessment rate is about as high as Class 2\u2019s and the tax rate is about as high as Class 1\u2019s, then I think Hochul and Mamdani accomplish the revenue target they want while keeping the code (relatively) simple, avoiding unintended regressive consequences, and without applying targeted thresholds. A \u201c$5 million pied-\u00e0-terre tax\u201d sounds catchy, but creating sharp cliffs like that both leaves money on the table (what about $4 million?) and creates a line for investors to avoid. Instead, using stepwise increases within this new classification will generate more revenue and be more progressive.<\/p>\n<p>Cut the personal attacks. This is more of a messaging note, but the way the policy is messaged is a central part of it. As The Free Press editors wrote (under \u201cWhat the right is saying\u201d), filming marketing material outside one person\u2019s house makes them the single target for class resentment and creates a genuinely dangerous environment. Mamdani is playing up class resentment in a way that we\u2019ve seen fail, to deadly effect, with political extremism. People like Ken Griffin shouldn\u2019t be treated as enemies while you\u2019re asking for more money out of them.<\/p>\n<p>Ultimately, the devil is in the details. New York has a potentially great idea on its hands \u2014 one that could increase its tax revenue with a minimal impact on full-time New York City residents \u2014 and I\u2019ll be very interested to see how this idea evolves.<\/p>\n<p>Staff dissent \u2014 Executive Editor Isaac Saul: I <a href=\"https:\/\/www.readtangle.com\/trumps-housing-affordability-proposals\/#:~:text=Staff%20dissent%20%E2%80%94%20Executive,from%20regular%20Americans.\" rel=\"nofollow noopener\" target=\"_blank\">disagreed with Ari<\/a> on a policy proposal like this in January (when he proposed it to make housing more affordable) and I disagree with it now (as a scheme to find more revenue). The best tax schemes are the ones that are fair, simple, and enforceable. This is none of the above. Fairness: The top 1% of New Yorkers <a href=\"https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/documents\/Spotlight_PIT_Taxpayers.pdf?ref=readtangle.com#page=9\" rel=\"nofollow noopener\" target=\"_blank\">already pay<\/a> roughly 40% of city income taxes, and they\u2019re already taxed at a higher rate than middle-class New Yorkers. Simplicity: NYC\u2019s property tax regime is deeply dysfunctional as-is, and a new surtax would add another layer of complexity and volatility to the city\u2019s tax code. If you want to raise property taxes on expensive homes, just raise taxes on the top 1% or 2% of homes (New York\u2019s effective property tax rate is, actually, <a href=\"https:\/\/taxequitynow.nyc\/maps_charts\/issue-2-new-york-city-property-tax-taxes-valuable-property-lower-rates-less-valuable-properties\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">higher for working-class people<\/a> than the rich). Enforceability: \u201cPrimary residence\u201d in New York is already a multi-factor domicile test that is too elaborate and hard to enforce. It is also already a huge source of litigation. This is sure to invite more primary residence fights and lawsuits, and that\u2019s without even considering that many of these luxury properties are owned by LLCs or family trusts, which will require even more tax registry categories and other enforcement mechanisms.<\/p>\n<p>Without even touching the mayor\u2019s reckless, creepy, joker-esque video framing Ken Griffin \u2014 who\u2019s committed no crime and is accused of no wrongdoing \u2014 as a Bad Guy, the policy is less a straightforward scheme to make the wealthy pay their fair share than it is a complicated, unenforceable tax mess that sounds good on paper but will not work in practice.\u00a0<\/p>\n<p>Take the survey: What do you think about the proposed pied-\u00e0-terre tax? <a href=\"https:\/\/interrobang.vercel.app\/survey\/a61abe90-a132-476b-96e8-4720fadb4d46?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">Let us know<\/a>.<\/p>\n<p>Disagree? That&#8217;s okay. Our opinion is just one of many. Write in and let us know why, and we&#8217;ll consider publishing your feedback.<\/p>\n<p>Your questions, answered.<\/p>\n<p>We&#8217;re skipping the reader question today to give our main story some extra space. Want to have a question answered in the newsletter? You can reply to this email (it goes straight to our inbox) or\u00a0<a href=\"https:\/\/docs.google.com\/forms\/d\/e\/1FAIpQLScQhqBSG_6_oBhwcTQMeS570n29XYbeQ9C9Bis7rjqI31g1tA\/viewform?usp=header&amp;ref=readtangle.com\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">fill out this form<\/a>.<\/p>\n<p>On this day in history.<\/p>\n<p>                        <img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2026\/04\/Earth_Day_-_Enact_1970.jpg\" alt=\"CTA Image\" data-image-dimensions=\"1920x1280\"\/><\/p>\n<p>An environmental &#8220;teach in&#8221; in Michigan in 1970 | Wikimedia Commons<\/p>\n<p>Today is Earth Day \u2014 let\u2019s take a look back to see how that designation began.<\/p>\n<p>On April 22, 1970, thousands of college campuses nationwide <a href=\"https:\/\/www.earthday.org\/history\/?ref=readtangle.com\" class=\"cta-link-color\" rel=\"nofollow noopener\" target=\"_blank\">held<\/a> classes, demonstrations, and protests to raise awareness of industrial air and water pollution, a concern popularized in part by Rachel Carson\u2019s 1962 book Silent Spring. 20 million Americans, roughly 10% of the U.S. population at the time, took part in the event. Behind the effort was Wisconsin Sen. Gaylord Nelson (D), who recruited California Rep. Pete McCloskey (R) to serve as his co-chair and activist Denis Hayes to organize the campus rallies. Sen. Nelson originally proposed calling the event \u201cEnvironmental Teach-In,\u201d but by the time April 22, 1970, rolled around, organizers and national media had widely adopted \u201cEarth Day,\u201d a name coined by legendary advertising writer <a href=\"https:\/\/www.nytimes.com\/2014\/06\/18\/business\/julian-koenig-who-sold-americans-on-beetles-and-earth-day-dies-at-93.html?ref=readtangle.com\" class=\"cta-link-color\" rel=\"nofollow noopener\" target=\"_blank\">Julian Koenig<\/a>. \u201cOur goal is a new American ethic that sets new standards for progress, emphasizing human dignity and well being rather than an endless parade of technology that produces more gadgets, more waste, more pollution,\u201d Sen. Nelson <a href=\"https:\/\/doorcountypulse.com\/sen-gaylord-nelsons-earth-day-speech\/?ref=readtangle.com\" class=\"cta-link-color\" rel=\"nofollow noopener\" target=\"_blank\">said<\/a> in an address to a crowd in Denver, Colorado, on the first Earth Day. <\/p>\n<p>Retirement Shouldn&#8217;t Mean Constant Math<\/p>\n<p>Fixed income plus rising costs turns relaxation into calculation. But the real drains aren&#8217;t usually big purchases \u2014 they&#8217;re outdated services and inefficient accounts quietly <a href=\"https:\/\/financebuzz.com\/money-moves-cut-on-retirement-yaez?utm_source=tangle&amp;utm_medium=paid-newsletter-cpf&amp;utm_term=Tangle&amp;utm_campaign=BM-FBZ-Tangle-money-moves-cut-on-retirement-yaez-CPF&amp;adgroupid=BM-Tangle-money-moves-cut-on-retirement-yaez-CPF-04222026\" rel=\"noreferrer nofollow noopener\" class=\"cta-link-color\" target=\"_blank\">bleeding your nest egg<\/a>. <\/p>\n<p>FinanceBuzz compiled 22 simple cuts and tools to reclaim your budget for what actually matters.<\/p>\n<p><a href=\"https:\/\/financebuzz.com\/money-moves-cut-on-retirement-yaez?utm_source=tangle&amp;utm_medium=paid-newsletter-cpf&amp;utm_term=Tangle&amp;utm_campaign=BM-FBZ-Tangle-money-moves-cut-on-retirement-yaez-CPF&amp;adgroupid=BM-Tangle-money-moves-cut-on-retirement-yaez-CPF-04222026\" rel=\"noreferrer nofollow noopener\" class=\"cta-link-color\" target=\"_blank\">See the Full List<\/a>.<\/p>\n<p>One year ago today we wrote about <a href=\"https:\/\/www.readtangle.com\/death-of-pope-francis\/\" rel=\"nofollow noopener\" target=\"_blank\">the death of Pope Francis<\/a>.The most clicked link in our last regular newsletter was our <a href=\"https:\/\/www.youtube.com\/watch?v=qpfKcN2qY_E&amp;ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">video about Chinese fishing vessels<\/a>.Nothing to do with politics: An <a href=\"https:\/\/www.popsci.com\/environment\/tortoise-with-wheels\/?ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">injured turtle gets its own wheels<\/a>.Our last survey: 1,572 readers responded to our survey on renewing Section 702 of FISA with 70% saying Congress should not reauthorize it. \u201cA warrant is a minimum reform. How hard is it to get a warrant from a FISA court anyway? That needs reform too,\u201d one respondent said. \u201cIf you\u2019re not talking with foreign criminals then you have nothing to worry about,\u201d said another.<img class=\"kg-image\" alt=\"\" loading=\"lazy\" width=\"1800\" height=\"1344\"  \/>Have a nice day.<\/p>\n<p>With 18,000 land mine-related deaths in Cambodia in the past half-century, one nonprofit, Apopo, has turned to using African giant pouched rats, whose small size and powerful sense of smell allow them to locate hidden mines quickly and safely. One of these rats, Magawa, stood above the rest, locating over 100 mines in his five-year career. He died in 2022, and Cambodia unveiled a seven-foot statue earlier this month to honor his work. \u201cMagawa was one of the best rats we\u2019ve ever had. Magawa was calm and focused \u2026 he was gentle and friendly with his handlers. He just had the perfect temperament,\u201d Michael Raine, a program manager at Apopo, said. <a href=\"https:\/\/www.washingtonpost.com\/lifestyle\/2026\/04\/08\/rat-cambodia-statue-land-mines-magawa\/?ueid=0a8fc575ea8aa3bc65c36a47caebc5a7&amp;ref=readtangle.com\" rel=\"nofollow noopener\" target=\"_blank\">The Washington Post has the story<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"I&#8217;m Isaac Saul, and this is Tangle: an independent, nonpartisan, subscriber-supported politics newsletter that summarizes the best arguments&hellip;\n","protected":false},"author":2,"featured_media":206329,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[9,24,55,54,56],"class_list":{"0":"post-206328","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-new-york","9":"tag-new-york-city","10":"tag-new-york-city-headlines","11":"tag-new-york-city-news","12":"tag-ny"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/206328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=206328"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/206328\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/206329"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=206328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=206328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=206328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}