[geofft]

I think I'm being unclear about my argument. $95K today is not a great income in NYC. But that's not what I'm asking. In an alternate universe, where all income of all New Yorkers, not just me over $100K is taxed at 70%, is $95K still not a great income?

I suspect that in such an alternate NYC, very few renters (let's ignore buyers, because it makes it more complicated, but I think my argument applies there too) would be motivated to make significantly more than $100K. Therefore most people are going to be paying at most $100K/40 = $2500/month for housing according to the standard NYC rental guidelines. The market for 1BR apartments that cost $3000, $4000, $10,000/month no longer exists. (Double that for 2BRs.) In that housing market, not in the current NYC housing market, would I still end up homeless and hungry on the street if I had to pay rent from savings? I think there's a lot less chance that if I got laid off I'd be unable to make rent in this alternate universe, even if I had the savings of making $95K/year, than that if I got laid off from my current job making >>$100K/year and with my current savings I'd be unable to make rent in this universe.

Obviously in the NYC of current reality, I am not going to donate 70% of everything I make over $100K. The very fact that taxes are a collective activity is what makes them different from voluntary charity.