[rayiner]

> And customers love those services.

All else being equal, customers love paying less for the same thing. But they don't necessarily like the implications at scale. E.g. would New Yorkers vote to raise property or income taxes to make up for the $1.8 billion that would be lost from hospitality taxes?

[scarmig]

Even that's not as simple, though: if hotels all failed, they would be replaced by something else (maybe AirBnBs, maybe other things, probably a mix) that would generate economic activity and tax revenues.

Certainly adding up to less than what's lost in hospitality taxes, but it does counteract the loss to an extent.

[rayiner]

It doesn't counteract the loss, because the hotel already generated economic activity and tax revenue and then hospital taxes on top of that.