New York City used to be synonymous with wealth and opulence. Not any more if it keeps demonizing wealth and promoting socialism. From Simon Black at sovereignman.com:
Last month, Chicago hedge fund billionaire Ken Griffin spent $238 million on a condo in New York City.
It was the most expensive home ever sold in the US (but only one piece of Griffin’s massive, luxury real estate portfolio).
Good for Ken… he’s incredibly wealthy and can spend his money however he wants. But most of society hates this kind of behavior.
Even if a guy has earned $10 billion through hard work and ingenuity, they don’t believe he can spend it freely… and those feelings have only been growing recently with the widening wealth gap and the rising, leftist presidential contenders.
And New York City is gunning for Griffin…
He’ll no doubt pay millions of dollars a year in real estate taxes and employ a team of people just to manage that property… and his investment firm, Citadel, has an office in NYC employing hundreds of people.
But NYC wants more, specifically for Griffin to pay more tax to fund the city’s affordable housing program.
Griffin’s purchase was the perfect backdrop for the government to bring up the “pied-a-terre tax”… the proposed tax would be up to 4% per year for people who own properties above $5 million in NYC but don’t permanently reside there.
So Griffin would be out an extra $9 million a year (on top of the 1% mansion tax New Yorkers already pay on home purchases above $1 million – mind you, $1 million in New York gets you a few hundred square feet)… and normal real estate taxes.
It’s an all-out war on the rich in New York… because the city (and state) are broke.