Something Has to Give

I'm happy April 15th has come and gone. It is always a stressful time for me (and most Americans). And then, in addition to our annual income tax payment, we continue to pay other taxes everywhere we turn, all year round.?

When we buy food at the grocery store, we pay an 8.75% sales tax.?

When we check into a hotel, we pay 5.875% tax.?

When we rent a car, it's 6%; when we buy a house, we pay NY City, NY State, and Mansion Taxes. At every turn, there's a tax.?

I understand that schools, fire, police departments, infrastructure, etc., cost a lot of money, but I have to believe there's a better way to fund vital services and keep our city safe and clean.?

New York is still the best big city to live in and has been gaining millionaires despite an earlier exodus. Apparently, taxes were not the reason for their departure. Over three-quarters of high-income earners who left during the pandemic moved to other high-tax states, like Connecticut, New Jersey, and California, citing quality of life issues rather than taxes. Despite this, New York City gained more than 15,000 new millionaires last year as we continue to get back on our feet. And they are facing an issue plaguing most New Yorkers: finding a place to live.

One of the primary reasons inventory is low is that people are stuck in place. Many empty nesters live in nests far too big, and they would love to downsize, but the costs are too high. Their low mortgage rate makes it difficult to buy something smaller, and after closing costs - and all the taxes - they would be paying more for less.?

One idea: We should eliminate capital gains tax on the sale of a primary residence. If a seller in New York City sells their home for $2M more than they originally paid, they'd be left with less than half of that to reinvest. The same seller in Australia, New Zealand, Switzerland, and a host of other countries would have $2M to reinvest.?

Making it easier for people to make money from a home sale will incentivize them to sell, which in turn would spur home sales, build wealth, and infuse money into our city. It is one idea out of a million.

Because honestly, something has to give.

Let's do this.

Shaun