Stop Chasing the Rich Away

Liberal big cities and states have backed themselves into a corner with out-of-control spending for social programs they do not need and not enough tax dollars to fund bloated budgets, creating massive fiscal deficits. The federal government has been a poor example for these progressive enclaves, consistently overspending and creating a deficit in the trillions of dollars that will never be paid down. Unlike Washington, D.C., which can ignore the deficit and leave it for future generations to deal with, most cities and towns are governed by charters or state constitutions, which require a balanced budget, so in a case like California, Washington state, or New York City, they either have to find new tax revenue or borrow the money to achieve a balanced budget. The problem is radical Left or Socialist mayors and governors who are promising programs to get elected that they can never afford. Free groceries, daycare, health insurance, and busing may sound great, but someone has to pay for these foolish, free giveaways. This is why Socialism has never and will never work. There is never enough money to for it.

Let’s focus on New York City which is living out the warning given years ago by Margaret Thatcher, who said that the problem with Socialism is that eventually you run out of other people’s money. Self-proclaimed Socialist, Mayor Mamdani is being forced to come up with creative new ideas to raise money. Since the low and the middle-classes have no means to give more, the Mayor has his sights set on the rich. The top 1% of taxpayers in the Big Apple already pay 45-50% of the budget, but that has not achieved what the Left considers a fair amount. These politicians demand more, never stating exactly what fair is. The quest for more tax revenue from the top 1% is resulting in an exodus of wealthy taxpayers from states like California, Michigan, Maine, and New York, who are taking their tax dollars to states with more reasonable tax laws like Texas, Florida, and Tennessee, which is creating a greater monetary shortfall.

Mayor Mamdani and Governor Hockul have teamed up to go after a specific segment of the upper class in New York City, and those are the part-time residents. They have even come up with a fancy name for the new tax, which I guess makes it chic in their minds: the Pied-a-Terre tax.

Pied-a-Terre is a small secondary residence used for part-time, temporary, or seasonal living. Derived from the French phrase meaning “foot on the ground,” it is usually an apartment or condo located in a major city, separate from an owner’s primary residence. The Progressive Duo claim that part-time residents do not pay as much in taxes as full-time, so they need to dig deeper. This premise is incorrect, the tax is unfair, and the mice are fleeing in droves. Mamdani singled out Ken Griffin, CEO of Citadel, as an example of someone who needs to pony up.

Ken Griffin currently pays close to $1 million a year in property taxes on his Central Park Condo. the Pied-a-Terre tax would cost him another $1 million yearly. Can Griffin afford the additional tax? That is not the question. He can, but should he? No.

The wealthy in America need to be praised for their success and used as an example of what people can achieve under Capitalism. They should not be demonized and penalized by the system, simply because they can afford it. In addition to taxes, Griffin gives millions of dollars annually to numerous charitable causes. This is voluntary, and the non-profits of Miami Beach are salivating at the thought of Griffin becoming a year-round resident. New York City will not be so happy, but they had best remember that they created the problem and pushed people like Griffin out of the state.

I suggest to the New York brain trust that they put their heads together and start trimming unnecessary programs from the budget, rather than squeezing another dollar out of Ken Griffin’s coffers.

Author’s note: Graphic created by GROK AI