[citadel_melon]

Property taxes already exist. There is no obvious reason why this particular property tax would be legally problematic.

The tax is also likely politically difficult to counter. Consider how limited in scope these taxes are, how the tax revenue benefits residents who live in NYC through providing more revenue for services without taxing residents at all, and how the only constituent the taxes negatively affects are non-residents (aka it’s non-trivial to argue that these people should even be considered constituents) who benefit from the services the city offers through stable apartment prices that nicely store their wealth yet provide little value in return.

The only rebuttal one could conceive is the value these high-net-worth individuals altruistically provide the city through developing office space and giving jobs to the city is not worth risking, but that is like saying the tail wags the dog. The reason these CEOs go to NYC is because that is where the talent and economic clustering is: if these high-net-worth individuals could get the talent they need to run their firms in Miami and Austin, they would have done so already. They have tried and they have failed up until this point.

Regardless, a claim into the future in such a complex system such as the markets and the judicial system (especially a common law system) always relies on induction which is never going to be deterministic. However, this tax is just another property tax meaning it likely will stand in court. Additionally, given that the opposition has very weak rebuttals against a well-versed counterparty implies the legislature or other political machinery won’t have a strong enough incentive to fight this tax.

[NickC25]

>The reason these CEOs go to NYC is because that is where the talent and economic clustering is: if these high-net-worth individuals could get the talent they need to run their firms in Miami and Austin, they would have done so already. They have tried and they have failed up until this point.

This needs to be shouted from the rooftops.

I am from NYC and live in Miami.

I have seen hedge funds try and fail to bring talent down here, and paying talent through the nose to convince them. It has failed, because 1. local private schools won't let Ken Griffin buy his way to the front of the line; and 2. there's no local talent pipelines to recruit from that come even remotely close to what is found in the Northeast, or in the Bay Area.

UM pales in comparison to the fact that almost every Ivy League school is within a 3 hour drive of NYC, not counting other strong school (NYU, NEASC colleges, MIT, etc). FIU or UF isn't even in the same stratosphere.

Taxes pay for the establishment of a strong educational foundation so that even local public schools can send kids to Ivies or top colleges. Taxes pay to keep that going.