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"Mansion Tax" Coming To New York, Compliments Of Mayor de Blasio

Tyler Durden's picture




 

For all the talk about the "brilliance" of Thomas Piketty's proposal to tax the financial assets of the "rich", Zero Hedge first warned it would come in September 2011, and subsequently the IMF also sent out trial balloons in various white papers, even though it vehemently denied it was espousing such a concept. Of course, what happened next was just this in March of last year when taxpayers, rich and not so rich, ended up getting taxed involuntarily when Cyprus collapsed and deposits across the board were confiscated to bailout the local banking system. But the first real salvo to layer on taxes focusing on the ultra rich came earlier this year when the UK's "Mansion Tax" proposal became a reality.

This too is something we had warned about previously: "if you are buying a house, enjoy the low mortgage (for now... and don't forget - if and when the time comes to sell, the buyer better be able to afford your selling price and the monthly mortgage payment should the 30 Year mortgage rise from the current 4.2% to 6%, 7% or much higher, which all those who forecast an improving economy hope happens), but what will really determine the affordability of that piece of property you have your eyes set on, are the property taxes. Because they are about to skyrocket."

And since the entire developed world is insolvent (don't believe us, believe Paul Singer), it was only a matter of time before this percolating English idea moved across the big pond: this we warned about also when we said that "if anyone is still confused, the IMF-proposed "mansion tax" is most certainly coming to the US, and every other insolvent "developed world" nation, next."

Today we learn that we were right about this too. The Post reports that "After his failed attempt to hike income taxes on the wealthy, Mayor de Blasio is eyeing another way to squeeze money from millionaires to fund another top priority: affordable housing. Multiple sources tell The Post that the mayor is talking to people about how to increase the so-called “mansion tax” on homes selling for $1 million or more to help offset the cost of adding 200,000 affordable-housing units."

Will this latest attempt to enforce equality among the classes, where the rich are the sole beneficiaries of the Fed's generosity as Singer also pointed out, be fast-tracked? Perhaps not:

However, boosting the mansion tax would require Albany’s approval, and sources say that could be a major hurdle for de Blasio because Gov. Cuomo smacked down his income-tax-hike idea earlier this year. The state mansion tax already exists statewide and levies a 1 percent fee on residential property sold for at least $1 million. In the 2012-13 fiscal year, it generated a record-busting $259 million. While it covers the entire state, The tax hits hardest in Manhattan, where seven-figure prices are common even for modest-sized co-ops and condos.

But while there may be some initial objection to the tax, with the Fed on pace to halt monetizing the US federal deficit, it is inevitable that the "rich" are duly taxed on their financial assets: first houses via a "Mansion tax", and then all their other holdings. Because the underlying reality of an insolvent world is just that: without new sources of funds, the global ponzi scheme will simply grind to a halt, and then collapse, as Bernie Madoff can so willingly attest.

Of course, how soon until the "rich" do the next logical thing and sell their assets ahead of being taxed through the nose on their holdings, is the only remaining question. As always, with game theoretical set ups of this kind, he who sells first (anything that is or is not nailed down), will sell best.

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Thu, 05/01/2014 - 10:52 | 4715929 LawsofPhysics
LawsofPhysics's picture

< meh > - I am sure that there will be loopholes for those "in the club"...

 

The robber barrons are back...

Presonally, my winter mansion is actually a "house of worship"...

 

same as it ever was...

Thu, 05/01/2014 - 10:54 | 4715939 Slave
Slave's picture

"Rich" "1%" "Wealthy"

*YAWN*

Let me know when we're talking about the:

".01%" "The tribe" "Oligarchs" etc

Otherwise you just sound like a bunch of jealous children.

Thu, 05/01/2014 - 10:57 | 4715953 LawsofPhysics
LawsofPhysics's picture

"a bunch of jealous children" -  based on the "representation" in D.C. I think you might be on to something.

Thu, 05/01/2014 - 10:57 | 4715955 Beam Me Up Scotty
Beam Me Up Scotty's picture

The rent is TOO DAMN HIGH!!

Thu, 05/01/2014 - 11:07 | 4716004 SilverIsKing
SilverIsKing's picture

Well, if you want to buy my $5 million home, I can sell it to you for $999,999 but you also have to buy this paper clip from me for $4,000,001.

 

Thu, 05/01/2014 - 11:12 | 4716022 dontgoforit
dontgoforit's picture

What is it with NYC and its idiotic mayors?  Bloomberg - rich as a sultan and wanting to control every aspect of peoples lives - and now DiBlasio.  I don't understand how New Yorkers keep electing these people.

Thu, 05/01/2014 - 11:24 | 4716103 PTR
PTR's picture

Just like in Chicago, [voting] people like drinking their dose of bullshit and illusions.  

 

Oh, and they still go for the "strong figurehead" type to lead the pack.

 

Fun times.

Thu, 05/01/2014 - 11:25 | 4716109 MeMongo
MeMongo's picture

Dontgoforit

If you don't "understand" it yet I'm sorry, but it is a great big internet and if you just apply yourself I assure you the answers are out there! Ok that's Mongo's service announcement, now out to hunt for some Morels!:-)

Regards!

Thu, 05/01/2014 - 11:41 | 4716178 SAT 800
SAT 800's picture

Be cheaper to excort the 200,000 bums down to the docks and ship them back to Africa and Puerto Rico.

Thu, 05/01/2014 - 13:06 | 4716661 Antifaschistische
Antifaschistische's picture

How about I pay you $20,000 all in $50 US Gold 1 oz coins.   Paperwork all says $20k.

Thu, 05/01/2014 - 11:27 | 4716120 Canadian Dirtlump
Canadian Dirtlump's picture

Indeed. regulations are designed to punish the profane. One need only to look at GE to see that even if the corporate tax rate was 100%, when you don't pay, period, it doesn't matter.

Thu, 05/01/2014 - 13:06 | 4716659 Libertarian777
Libertarian777's picture

1% tax on houses over $1m

10% rebate on houses over $10m

 

Thu, 05/01/2014 - 14:35 | 4717052 wagthetails
wagthetails's picture

my fav is the Kennedy's donating the compound to the state...but requiring that the family has sole use of the property for several weeks  a year.  makes sense to me, i wouldn't want to pay taxes or upkeep while i was not there either.  well played. 

Thu, 05/01/2014 - 10:52 | 4715932 holmes
holmes's picture

Yea baby, bring it on. The rich voted for this commie. They deserve whatever he throws at them.

Thu, 05/01/2014 - 10:53 | 4715933 LawsofPhysics
LawsofPhysics's picture

Interesting comment.  I wonder what percentage of the electorate who voted for him made more the a million dollars last year?

Thu, 05/01/2014 - 10:57 | 4715956 NidStyles
NidStyles's picture

Probably 0%. THe rich do not vote, they buy or rent their politicians.

Thu, 05/01/2014 - 11:01 | 4715976 LawsofPhysics
LawsofPhysics's picture

That's my point.  All animals are created equal, but some animals are indeed "more equal" than others...

fascism/cronyism 101...

Thu, 05/01/2014 - 11:26 | 4716098 HardAssets
HardAssets's picture

Its difficult making any prediction about what the PM 'markets' will do next week.  But its a pretty damned sure bet that politicians will jump on the go-after-the 'rich' meme to sell to voters.  Their targets includes that portion of the population who are productive and actually serve the consumer - small businessmen, farmers, entrepreneurs, etc.  The 'you didn't build that business' guys at the center of the bullseye.

The oligarch .0001 %  don't pay taxes, have their lawyers draft the 'laws', and own the politicians & bureaucrats. They don't want anyone to have the resources to oppose them.   Of course, they don't identify themselves with any nations either.

Thu, 05/01/2014 - 11:27 | 4716124 LawsofPhysics
LawsofPhysics's picture

"The oligarch .0001 %  don't pay taxes, have their lawyers draft the 'laws', and own the politicians & bureaucrats.  Of course, they don't identify themselves with any nations either." - Yes, and with the entire planet under their control, the outcome will be the same as last time.  Late 1700's in France, only this time on a global scale, complete with some cool new weapons such as tactical nukes...

hedge accordingly.

Thu, 05/01/2014 - 12:07 | 4716328 HardAssets
HardAssets's picture

"this time on a global scale"

Ain't that the truth, and something the psychos' models can't cover. The entire (so called 'civilized') world is in their fiat cage. Nothing like this has happened before in world history.

Black swans on their horizon ?  More like giant black flying dragons.

Thu, 05/01/2014 - 11:28 | 4716126 Cathartes Aura
Cathartes Aura's picture

upvoted NidStyles.

re-cognise the Truth of present govern-mental reality,

or continue to whine about all actions pointing to an inevitable

collapse.

Thu, 05/01/2014 - 10:53 | 4715935 youngman
youngman's picture

Thats 400,000 shoe in voters for sure....give them a house and they will vote for you forever..

Thu, 05/01/2014 - 10:55 | 4715943 Colonel Klink
Colonel Klink's picture

New Yorkers got what they deserve.

Thu, 05/01/2014 - 11:14 | 4716034 onewayticket2
onewayticket2's picture

as a resident of a neighboring state, i both love and hate this.

 

i love it as it will drive the essential "rich" to my state - buoying prices.  i hate it bc our gov will want to do the same thing.

 

open wide folks....this is coming to every state.....

Thu, 05/01/2014 - 11:22 | 4716085 Colonel Klink
Colonel Klink's picture

You have my sympathy.  It usually appears between the words shit and syphilis.

I'd flee that area ASAP.

Thu, 05/01/2014 - 11:51 | 4716239 TheMeatTrapper
TheMeatTrapper's picture

"i love it as it will drive the essential "rich" to my state - buoying prices."

Be careful what you ask for. The mountains of north Georgia and North Carolina are chcock full of retired school teachers and firefighters from New York. They sold their high dollar houses in New York and moved South with their big fat pensions. They bought up land and homes in the rural areas here driving prices through the roof. 

They don't work, collect fat checks and make more money sitting on their ass than he  locals do working a real job. They do everything they can to harass hunters and generally implement thier left leaning socialist mindset here. They view the locals as backwards and themselves as smugly superior. 

If their pension checks ever bounce - they are royally fucked as people down here have no use for them whatsoever. 

Thu, 05/01/2014 - 11:55 | 4716258 Colonel Klink
Colonel Klink's picture

Kind of like the cesspool people who ooze out of Commiefornia into Colorado, Washington, Oregon, and Idaho.  Then try to enact their socialist ideas and make it the Commiefornia they tried to escape in the first place.  Our country needs one big liberal cleanse.

Thu, 05/01/2014 - 12:39 | 4716517 drendebe10
drendebe10's picture

gummint workers have obscenely better pay, health insurance, vacation, paid sick days, benefits and retirements than the tax paying serfs and peasants who fund their largess, work harder than they do, get paid less and only have a 401K  or IRA .  Wake the frack up.... if their gummint fat, paid to do little checks dry up, well, that's too bad but probably won't happen... if it does, all the tax payers who fund the scam gummint should dance in the street...

Thu, 05/01/2014 - 14:16 | 4716962 Greenskeeper_Carl
Greenskeeper_Carl's picture

Unfortunately that's pretty accurate, I can attest to that as an Atlanta native who used to go up there pretty regularly. Not as bad as Florida, where I am currently living. But I was looking forward to north Georgia, or North Carolina mountains in a few years. Hopefully those fuckheads don't ruin it. As long as they never out number the locals, the area should retain its roots.

Thu, 05/01/2014 - 11:25 | 4716105 yellowsub
yellowsub's picture

His crookedness is already coming to light...

Thu, 05/01/2014 - 10:55 | 4715944 koaj
koaj's picture

This asshole cant even plow snow properly...thats really the job of any mayor. Clear the streets and get out of the way.

 

Boss Tweed wannabes always get whats coming to them

Thu, 05/01/2014 - 10:56 | 4715947 Lumberjack
Lumberjack's picture

I am sure they will be able to purchase 'Mansion Offsets' to reduce their mansion footprint.

Thu, 05/01/2014 - 10:56 | 4715948 Freewheelin Franklin
Freewheelin Franklin's picture

NYers voted for this ass, now they have to deal with him. I ain't gonna shed no tears. They deserve what they get. 

Thu, 05/01/2014 - 10:59 | 4715965 fonzannoon
fonzannoon's picture

Yeah but look how happy she is.

https://www.youtube.com/watch?v=Bg98BvqUvCc

Thu, 05/01/2014 - 11:17 | 4716049 Skateboarder
Skateboarder's picture

It would be a very interesting datapoint to see if she actually ended up getting an Obiephone, and what other 'treats' she's getting from the gubbamin.

Thu, 05/01/2014 - 10:59 | 4715968 NidStyles
NidStyles's picture

What if you were to find out tomorrow that all elections are rigged? What would you think about your comment here if you found that out?

Thu, 05/01/2014 - 11:07 | 4715998 fonzannoon
fonzannoon's picture

me or her?

Thu, 05/01/2014 - 11:20 | 4716070 dontgoforit
dontgoforit's picture

Now that might just be the spark that set off the revolution explosion.  And rightfully so.  What a shit-show.

Thu, 05/01/2014 - 10:58 | 4715957 Yen Cross
Yen Cross's picture

    I keep thinking about those commercials that advertise deferred taxes for 10 years if you move a business to New York. I'm sure most of business owners wouldn't be purchasing a shack for under $1mil in N.Y. (The old bait and switch)

    They should rename N.Y. to Eastern Cuba.

Thu, 05/01/2014 - 10:58 | 4715959 IridiumRebel
IridiumRebel's picture

Enjoy my last payment of taxes DeBlasshole....no more for you from me and mine.

Thu, 05/01/2014 - 10:58 | 4715960 RSloane
RSloane's picture

What happens when there are not enough "mansions" to compensate for more housing units? If they follow the Republic of Maryland's logic, the word "mansion' will be downscaled until it does match the funds being sought and it will hit a lot of people not intended to be impacted by this.

Building more housing units for the poor flies in the face of gentrification which is happening in some parts of NYC. He better watch his tax base before it up and moves as it did in Maryland.

Thu, 05/01/2014 - 11:21 | 4716078 dontgoforit
dontgoforit's picture

They'll turn the mansions into "Homes for the Mentally Struck."

Thu, 05/01/2014 - 13:08 | 4716669 Libertarian777
Libertarian777's picture

they won't 'downscale' the mansion. They'll leave it at $1m.

What they do is get the Fed to get bubbly asset prices and double digit inflation, so in 15 years time, even trailer homes sell for $1m, a janitor earns $250,000 and a loaf of bread cost $25.

 

 

Thu, 05/01/2014 - 10:59 | 4715963 Dr. Engali
Dr. Engali's picture

He knows this shit will get smacked down too. He just wants too look good for his base when in truth he is taking them for a ride.

Thu, 05/01/2014 - 11:09 | 4716012 RSloane
RSloane's picture

He held a press conference to talk about how successful his crime policies were - in the middle of winter. When the press pointed out to him that NYC saw one bad snowstorm after another which kept people indoors and on the few days there was no snowfall violent crime increased, he told the press he was not there to talk about that! The guy's a moron.

Thu, 05/01/2014 - 11:13 | 4716027 fonzannoon
fonzannoon's picture

He is temporarily the best thing to happen to Lawng Island (and I assume Queens/Westchester). The Brooklyn/Manhattan crowd are scrambling. I have seen several boomer clients selling their homes telling me that they have been overrun with 30 something city crowds looking to get out.

Thu, 05/01/2014 - 11:14 | 4716035 Dr. Engali
Dr. Engali's picture

Lol..... What an idiot. I feel for the few sane people living in New York. I don't know how they do it.

Thu, 05/01/2014 - 12:12 | 4716360 NotApplicable
NotApplicable's picture

Temporary insanity?

Thu, 05/01/2014 - 12:17 | 4716387 twh99
twh99's picture

There are sane people in New York!  Who knew!

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