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Zohran Mamdani’s Proposal For A Millionaire Tax (www.fascinatingworld.org)
submitted 11 months ago by to c/politics@lemmy.world
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[–] 143 points 11 months ago (24 children)

Yep. Millionaires threaten to move away if they're taxed, but they won't. The convenience of having their high value properties in highly sought after areas, where all the services they use are present, is too enticing, and even a hefty tax won't be a deterrent.

Just imagine how much upheaval it would cause you to move a few states over. For a millionaire... it's the same except they're used to so much beyond basic survival - their parties, their exclusive clubs, exclusive gatherings, private boxes in theatres, the list goes on.

Do you really see such a person moving to Bumfuck Nowhere, Nebraska, just because that town doesn't tax millionaires? Do you really see them giving up 80-90% of the "rich life" just to save their wealth? Hell nah. As long as you're not explicitly threatening to tax them out of existence, they'll stay. Because unlike the average people they can afford that extra expense.

But of course they don't want to, they just yap around threatening the move without committing to it.

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  • [–] 38 points 11 months ago (9 children)

    A lot of millionaire wealth is tied to where they live. A New York lawyer or doctor can't just move to Miami and expect to have the same level. Business owners could potentially move, but they still would need to keep traveling back and forth. Ultimately, their social life and lifestyle is where they already liveand being the one who moved because "is expensive" it would be seen as cheap.

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  • [–] 17 points 11 months ago (5 children)

    FYI when we’re talking about taxing the rich and wealth we’re not talking about doctors and lawyers even if they still make a fuck ton because they are still getting paid for their labour and they need to work in order to maintain their lifestyle even if they would be considered rich.

    What we’re talking about are people who make their living through their capital I.e. due to the exploitation of other people.

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  • [–] 4 points 11 months ago (4 children)

    This article is about an income tax. An additional 4% tax on income over 1 million dollars annually.

    This article is not about a wealth tax.

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  • [–] 1 point 11 months ago (3 children)

    2% according to the article, not 4%.

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  • [–] 1 point 11 months ago (2 children)

    Voters narrowly approved a 4% surtax on incomes over $1 million in a statewide ballot referendum in November 2022.

    ??

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  • [–] 12 points 11 months ago (1 child)

    A quick search suggests most New York lawyers (avg $176k/yr) and surgeons (avg $300k to $750k) aren't going to be be affected.

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  • [–] 16 points 11 months ago*

    Yeah. We usually consider lawyers, doctors, tech people, academics at fancy universities etc. to be rich. But in the grand scheme of things, they're upper middle class at best. The real rich are all people with generational wealth coming from businesses.

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  • [–] 3 points 11 months ago

    This is not about wealth though, but income instead.
    I doubt those income millionaires can just leave New York and be better off than paying an additional 2% income tax while staying in NY.
    In all likeliness they'd have much more net loss from leaving NY than from additional measly 2% tax.

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  • [–] 8 points 11 months ago (2 children)

    Also isn't it so petty to admit you (would) move because you don't want to shell out your bit for your community? Like isn't that incredibly cheap? Don't you like living in New York? Don't you like your city?

    It's like the rich guy passing on the collection plate at church type move.

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  • [–] 3 points 11 months ago (1 child)

    Well, the rich didn't get rich by giving away their money.

    To them it's a status symbol - like how Apple products used to be status symbols for the plebeian (aka us).

    Having multimillion dollar supercars, villas, mansions, seven bedroom apartments, etc., works well, but you're only truly rich if you can show off how you didn't actually lose any value to get those benefits. How you didn't need to spend a single penny of your wealth to live the rich life.

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  • [–] 6 points 11 months ago (5 children)

    And even if some of them really move: is it worse them not paying taxes while not being there at all?
    I don't see the the core of their threat.

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  • [–] 13 points 11 months ago (4 children)

    The idea is that "rich people spend their money" - which, let's be honest, is blatantly untrue.

    The rich don't spend their own money. They trade favours. Hell, if you have $1mil on your hand, you can easily walk into a "rich people bank", open an account and get free shit every month, beyond the very generous interest rates. Free concert/theatre tickets, and such. It's like a casino hotel that tries to get you to stay with the freebies, but on an "I have a few million dollars in your bank" level.

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  • [–] 5 points 11 months ago* (last edited 11 months ago) (3 children)

    Frankly said, whether they spend their money or not is their business. If they are involved in shenenigans like you described that needs to be regulated, because it sure looks like tax evasion.
    And regarding the proposed tax (quoting the linked article): "The Millionaire Tax will impose an additional 2% income tax on the top 1% in NYC, who are earning over $1 million per year".

    So this tax in no way designed to tax their wealth, but merely their income by another measly 2%.
    Nobody will become poor because of this. Some income millionaires just become slightly slower even more rich than they already are.

    Have them move elsewhere and see whether they can keep their annual income in the millions there.
    I, for one, am willing to call their bluff.

    And once that is done, implement a wealth tax for the people who own x million USD.
    To keep them from freaking out, it can be as low as 5% annually, because that would still allow them to generate a net increase of their wealth.
    If they complain, increase the tax and start draining their fortune.

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  • [–] 7 points 11 months ago (2 children)

    Mist of their true income won't be touched. You don't get taxes for holding stock. You don't get taxed for borrowing. So, a lot of billionaires borrow against their stock to have spending money without paying income taxes.

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  • [–] 3 points 11 months ago

    And that is the real reason they want interest rates to be low. So the leech class can get better rates on their untaxed income from borrowing against stocks.

    Borrowing against stocks should be considered realizing gains from them and taxed as such.

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  • [–] 0 points 11 months ago (3 children)

    Many millionaires moved out of France after new taxes. 1,400 just in 2025.

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  • [–] 2 points 11 months ago

    What were those new taxes? Here we’re only talking an additional 2% on top of whatever nyc s state and local tax is that could be what 15%? Noticeable but not a dramatic change

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