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To the editor:
New York City has gross income and wealth inequality. It’s fueled an affordability crisis that Mayor Mamdani has pledged to address in his new administration.
His agenda focuses on housing, transportation and childcare. In order to implement this agenda, the Mayor needs a reliable annual stream of revenue that, in part, would be financed by new taxes on the wealthy and corporations. Unfortunately, Governor Hochul is adamant about not raising taxes on the plutocrats, a number of whom have generously contributed to her political campaigns.
A hundred and twenty-three billionaires with a net worth of $759 billion dollars live in New York City. This is more than anywhere else in the world.
An additional 12 billionaires live outside the city. New York City also has 384,500 millionaires, the most of any city in the world. It’s estimated that at least another 116,000 millionaires live outside the city.
By contrast, the number of New Yorkers living below the poverty line is 2.02 million. The number of New Yorkers facing food insecurity is 1.2 million. There are 150,000 children who suffer from homelessness.
From 2013 to 2023, the average annual grocery expenditure in NYC increased by 65.8 percent. The average annual cost of infant care in NYS is $17,361.
Mayor Mamdani has proposed universal childcare, beginning for children six months old. Governor Hochul supports a four-year plan for expanding free childcare in NYC for two years and up.
She also has a plan for the state to eventually implement universal childcare and expand pre-K programs state-wide. The governor has agreed to invest 1.7 billion dollars in free childcare for the next fiscal year.
The problem is that in future years the state may face deficits up to 10 billion dollars. Her refusal to support taxing the rich to create a permanent revenue stream makes problematic Mamdani’s progressive program to tackle the affordability crisis.
Howard Elterman
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Valete
This is another one of those ridiculous tax the rich letters that speak in political correctness but lack the facts of life.
Thursday, January 29 Report this
Valete
The fact of the matter is this, The top 1% of income earners in New York City pay the majority of the city's personal income tax (PIT), accounting for over 40% to nearly 50% of the total, despite representing a tiny fraction of taxpayers. This high-income group, often earning $900,000 or more annually, contributes more to the city tax base than the bottom 90% of earners combined.
Key details regarding NYC income tax contributors:
Highest Earners: In 2021, the top 1% of tax filers accounted for 48% of NYC PIT liability.
Millionaire Share: Filers with incomes over $1 million represent less than 1% of residents yet paid 40% of the city's personal income taxes in 2022.
Top 10%: The top 10% of taxpayers contribute roughly two-thirds of the total city income tax revenue.
Lower Earners: In contrast to the top, the bottom 50% of earners contribute only 0.2% of the city's total income tax liability.
Thursday, January 29 Report this
Valete
Taxing the affluent can present challenges due to its potential to generate limited revenue, incur substantial administrative expenses, and incentivize wealthy individuals to relocate in order to evade taxation. Furthermore, the accurate assessment and valuation of an individual’s wealth can be intricate and contentious, rendering enforcement a formidable task.
Challenges in Taxing the Wealthy
Taxing the affluent may not yield the anticipated revenue. Research indicates that stringent tax policies could only generate a modest percentage of GDP, frequently falling short of projections.
Numerous affluent individuals possess substantial portions of their wealth invested in assets that are not subject to taxation until they are sold. Consequently, unrealized gains remain untaxed.
Administrative Difficulties
Determining the true value of wealth is complex. Wealthy individuals often hold assets in various forms, such as private businesses or trusts, making valuation challenging.
The process of assessing and taxing wealth would require extensive resources, including a large number of tax inspectors and valuers, which may not be a productive use of government resources.
Economic Impact
High wealth taxes can discourage investment and entrepreneurship. Countries that have implemented such taxes have often seen negative effects on economic growth and job creation.
Wealth taxes may lead to capital flight, where wealthy individuals move their assets or themselves to countries with lower tax burdens, further reducing potential tax revenue.
Global Trends
Numerous developed nations have abolished wealth taxes due to their inefficiency and the administrative burden they entail. Presently, only a select few OECD countries retain such taxes, signifying a shift away from this approach.
Taxing the affluent presents substantial challenges that can hinder its effectiveness and impact on economic growth.
In conclusion, utilizing Peter’s resources to compensate for Paul’s expenses constitutes an economically ineffective policy, as demonstrated by the historical experiences of controlled economies.
Saturday, January 31 Report this
krell1349
The top 1% can afford to pay a little more. So many ways to shelter their income. The middle class is getting reamed.
Sunday, February 1 Report this
DOTHERIGHTTHING
Not a peep from the Mayor making NYC Affordable for NYC Medicare Retirees?
The threat of losing earned healthcare from the immoral associations stealing it to fund Actives tiny raises.
Plus going broke with the ever increasing Co Pay Tax imposed by the associations to deter retirees to seek medical care.
Shame on them ALL!
Monday, February 2 Report this
fcannisi
Howard hit the nail on the head. For decades going back to Ronald Reagan, GOP national elected officials have been cutting taxes for corporations, Wall Street investors and wealthy Americans. This has left States struggling to meet the needs of their poorer populations. And, this massive redistribution of wealth upward has also made life much less affordable for average wage earners. It is undeniable that the middle class is shrinking and the wealth gap between the top 1% and the bottom 99% is growing. If tax rates are not readjusted quickly, the middle will disappear leaving just a very wealthy few and an impoverished multitude.
Tuesday, February 3 Report this
Valete
Breaking News!
Without the wealthy, kiss your safety net goodbye.
Without big business, kiss your job goodbye.
Without the capitalist, kiss innovation and your standard of living goodbye.
Without the wealthy, who’s going to pay the taxes?
The “Have Nots,” I don’t think so!
Saturday, February 7 Report this