New York wealth tax
A heartening step towards wealth redistribution came by way of New York, where last week, the city's Mayor Zohran Mamdani and the Governor Kathy Hochul announced the pied-a-terre tax. If your primary residence is outside of New York and you own a house, condominium or apartment valued at more than $5 million, you will be subject to the yearly surcharge, so was I informed by Liza Featherstone's article in Jacobin.
This has all come at the back of the "tax the rich" campaign and is a big win for Social Democrats. The campaign calls for progressive taxation, investments in child care and essential services and a tax on the most profitable corporations. Sounds reasonable, right? Unless you're ultra-rich, of course.
One of the arguments made against implementing a wealth tax is that the rich will leave. I'm with Monbiot when he says it's "good riddance", because they are opting out of paying their share towards public life and goods. Taxes are the only fiscal tools we have to pay for public services that we all benefit from. They are not punishments. Whilst threats of millionaire exodus tend to be exaggerated, it will be interesting to observe how many do indeed flee, and where they will go. My hope is that other countries around the world follow New York's example. Currently, 125 UN member states support the proposed UN Framework Convention on International Tax Cooperation, which aims to tackle global tax avoidance and create a more inclusive system. But they face resistance from, among other countries, UK and US. Such a multi-lateral treaty has the power to not only narrow the number of tax refuges the rich escape to, but it will undoubtedly be a big step towards addressing the stranglehold of inequality that's immiserating lives and fragmenting politics globally.
The New York Governor had previously said she would not be taxing wealth, despite Mayor Mamdani's exhortations to do so. However, the Governor was met with such vocal and consistent campaigning on the issue, that she could no longer ignore an organised majority who want this change. Governor Hochul understands that a failure to heed their calls would eventually lose her political office.
The lessons I draw from this are:
- Organise or die.
- Create a simple campaign slogan that anyone can understand.
- Be relentless: talk to your neighbours, rally, lobby legislators.
- Have hope that things can change for the better and take action.
The simple fact is, we cannot afford ultra-wealthy tax avoiders, as they do us more harm than good. Progressive taxation is one of the best tools we have to redress those harms and create a fairer society where all can thrive.
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