Group opposing NY tax hikes off to rough start

Ex-governor David Paterson quits as chairman as other partners exit

New York /
Sep.September 01, 2020 11:30 AM
Former New York governor David Paterson (Getty; Pixabay)

Former New York governor David Paterson (Getty; Pixabay)

Opposing tax increases in New York is not for the faint of heart, it turns out.

A business group purporting to represent real estate interests, among others, partially disintegrated in its first month amid a backlash against its objection to tax increases, the Wall Street Journal reported.

Former New York governor David Paterson quit as chairman last week and the New York City Hospitality Alliance, Riders Alliance, Tech:NYC and New York League of Conservation Voters abandoned the effort as well when it became clear that opposing tax increases was at the top of its funders’ agenda.

Those funders have yet to be identified by Tusk Strategies, which convened the organization in July, but a spokesperson told the Journal that it involved Wall Street and would soon launch an advertising campaign. Tusk’s founder, Bradley Tusk, has worked with a number of billionaires from the financial world, including Daniel Loeb and Michael Bloomberg, as a strategist for political campaigns and charter schools.

Neither the Real Estate Board of New York nor the Partnership for New York City are involved in the new group, called the Campaign for New York’s Future. REBNY and the Partnership were key players in a similar effort in 2011 and 2012.

Advocates for taxing the wealthy criticized members of the group on social media for their involvement. With the city and state both facing budget deficits of unprecedented size and suddenness, progressives are pushing for the state to impose a second income tax on high earners, a tax on assets and an annual property tax surcharge on high-value second homes.

New York last year extended its so-called millionaires’ tax rate of 8.82 percent through 2024; this year it applies to single filers earning at least $1.08 million or joint filers earning twice as much. Combined with the city’s top rate of 3.876 percent, high-income earners pay 12.7 percent in state and local taxes, among the most in the country.

Nonetheless, it is believed that more billionaires live in New York than any other city. But Gov. Andrew Cuomo opposes a new income tax, saying it would cause some of them to change residency to another state.

That scenario could be more likely with indoor dining and theaters shut down indefinitely in the city. An estimated 420,000 New Yorkers fled the city after the pandemic struck in March. [WSJ] — Erik Engquist


Related Articles

arrow_forward_ios
Mayor Bill de Blasio (Getty, iStock)
Mystery group sues to stop de Blasio from restricting hotel development
Mystery group sues to stop de Blasio from restricting hotel development
From left: Marisa Lago, Anita Laremont and Mayor Bill de Blasio (LinkedIn, Getty, Wikimedia)
Politics, City Planning on collision course
Politics, City Planning on collision course
HRI founder Aaron Carr and Virginia Attorney General Mark Herring (Facebook, Getty)
Housing Rights probe pins voucher discrimination on VA landlords, brokers
Housing Rights probe pins voucher discrimination on VA landlords, brokers
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
State Sen. Jabari Brisport and a rendering of 840 Atlantic Avenue (Getty, IMC Architecture, iStock)
How a senator’s vampire politics hurt real estate — and NYC
How a senator’s vampire politics hurt real estate — and NYC
New law for immigrants seen as pointless for undocumented tenants
New law for immigrants seen as little help for undocumented tenants
New law for immigrants seen as little help for undocumented tenants
Tavros' Dov Barnett and a rendering of the current proposal at 44-54 Ninth Avenue and 351-355 West 14th Street (Tavros, Renderings via BKSK)
City orders Meatpacking office developer to dismantle, rebuild slouching façades
City orders Meatpacking office developer to dismantle, rebuild slouching façades
Who is still buying NYC’s rent-stabilized buildings?
Who is still buying NYC’s rent-stabilized buildings?
Who is still buying NYC’s rent-stabilized buildings?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...