"Facing a $7.3 billion budget deficit, Mamdani wants the state to cut its estate tax exemption threshold from $7.3 million to $750,000 while raising the top estate tax to 50 percent from 16 percent. That modest one-bedroom apartment an older New Yorker wanted to leave her family to help them get on the property ladder? The mayor will take half of it, thank you very much."
"A high estate tax on top of New York's high income tax would almost certainly drive more wealthy New Yorkers out of the state, exacerbating Mamdani's revenue problem. The mayor has threatened that, if the state isn't willing to raise taxes on the wealthy, the city will raise property taxes and drain reserves."
"Of course, New York doesn't need more revenue - the city could simply cut expenditures, starting with Mamdani's $127 billion spending plan for fiscal year 2027."
New York Mayor Zohran Mamdani proposed aggressive estate tax increases to address a $7.3 billion budget deficit, lowering the exemption threshold from $7.3 million to $750,000 and raising the top rate to 50%. This would affect middle-class homeowners trying to pass property to heirs. The proposal is unlikely to pass even in the Democratic-controlled state legislature, as New York already has both state and federal estate taxes. Such high taxes would likely drive wealthy residents out of state, exacerbating revenue problems. Governor Hochul expressed concern about excessive taxation without economic consideration. The city could alternatively reduce its $127 billion spending plan rather than increase taxes.
#estate-tax-policy #new-york-city-budget-crisis #tax-policy-and-economic-impact #government-spending
Read at The Washington Post
Unable to calculate read time
Collection
[
|
...
]