Do super-rich foreigners really generate huge tax revenues?

TRD NEW YORK /
Dec.December 15, 2013 02:00 PM

 New York City has heard a lot of talk about real estate and taxes of late. Particularly, about the tax revenue raised when super-rich foreigners buy super expensive apartments in the city. However, much of the tax generating potential of billionaire pieds-à-terres is myth, according to Crain’s.

Recently, Mayor Michael Bloomberg said that he hoped even more billionaires would buy in NYC because they run up massive tax bills, which supports the government, which in turn supports populist programs.

But in reality, as nonresidents, these billionaires pay no city or state income tax. Moreover, the real estate taxes on their $100 million penthouses are bargain-basement steals, according to Crain’s. The elimination of a special abatement for properties that sell for more than $5 million was the first step in making the rich actually contribute a fair share, but a higher real estate transfer tax and a tax on non-primary residences would go a long way to that goal, according to a report by the city’s Independent Budget Office. [Crain’s]Christopher Cameron


Related Articles

arrow_forward_ios
A photo illustration of Michael Gianaris and Jeff Bezos (Credit: Getty Images, Wikipedia, iStock)

Gianaris wants to reform NYC tax credit programs that drew Amazon

City Council Speaker Corey Johnson and Mayor Bill de Blasio (Credit: Getty Images, iStock)

NYC’s convoluted property tax system could get a big reboot

State Sen. Julia Salazar and Assembly member Harvey Epstein proposed the tax this month in an effort to disincentivize real estate speculation (Credit: iStock, Getty Images)

Experts take issue with proposed tax on mezzanine loans

State Senator Julia Salazar and Assemblymember Harvey Epstein (Credit: Getty Images)

Pols take aim at private equity with plan to tax mezz debt

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation

Staten Island City Councilman Joe Borelli and City Council Speaker Corey Johnson (Credit: Getty Images)

Gentrification tax? Pols pitch fix for “completely screwed” system

Rep. Alexandria Ocasio-Cortez and Governor Andrew Cuomo (Credit: Getty Images)

House votes to lift SALT deduction cap — but don’t celebrate

(Credit: iStock)

What’s wrong with J-51? Plenty, landlord reps say

arrow_forward_ios
Loading...