Group pushing pied-à-terre tax among others for wealthy
By Sabina Mollot
On Monday, a coalition of 35 millionaire New Yorkers, including Abigail Disney and Morris Pearl, retired managing director at asset manager BlackRock, signed onto a letter asking Albany to tax them higher. The reason, they explained in their open letter, which was in the works even before the coronavirus, is to help meet the “urgent” budget needs the state is currently facing.
“If we want our state to continue being a national leader, we need to continue investing in our people and our communities, and that requires higher taxes for wealthy New Yorkers,” said Pearl. “There’s no reason that millionaire investors who have profited the most from our state’s success should have lower tax rates than regular New Yorkers who have to work for a living.”
Among the taxes they’d like to see include the proposed “pied-à-terre tax” on second and additional homes over $5 million, which is having a second go in Albany after being previously shot down. Other taxes the wealthy letter signers say they ought to be saddled with are what they’re calling a “strengthened millionaire’s tax,” with a new marginal rate of 9.62 percent on income over $1 million, and new income brackets starting at $5 million (10.32 percent marginal rate), $10 million (11.32 percent) and $100 million (11.82 percent). This tax, they said, would bring in roughly $4.5 billion per year. They’re also calling for a “modest” annual tax on net assets, applied to households with over $1 billion in assets.