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>t's a luxury tax that only affects people wealthy enough to have a second home in NYC.

Not exclusively though, right?

Since they are revising the valuation system to not artificially depress valuations, isnt this a global tax increase? No rate changes or extra tax for someone with a primary residence but the base is increasing, right?

>While the tax seems large, experts say the city’s antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said.

>Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate.


>While the tax seems large, experts say the city’s antiquated assessment and valuation system dramatically undervalues properties, reducing the burden. City valuations can often be 10% or less of the true market value, they said.

>Rather than overhaul the system immediately, the city will gradually update valuations – and the tax – according to the budget documents. Starting in the 2028-2029 tax year, the property values will be based on comparable sales. Since valuations will skyrocket, the tax rates will fall to compensate.

Hold on a second. Reading between the lines, this means everyone's property taxes are going up, right? Because the valuation system is being revised to more accurately reflect resale value.

Obviously this would affect more expensive properties more. But I havent seen anyone acknowledge that everyone's taxes will increase. Is that because I have the details wrong or because it's just flying under the radar?


no, you're right.

it's flying under the radar because people don't read these things and critically think about them.

as per usual, the middle class will take the hit. the people that voted for this will become poorer, and the wealthy will go on as normal.


Now remember they are changing how property values are assessed. So everyone's base rises and the rich with 2nd homes dont pay the extra tax because they move it into an LLC.

> the rich with 2nd homes dont pay the extra tax because they move it into an LLC

Sounds like something worth addressing as a second phase!


>Probably the least complicated tax law. Increase taxes to increase revenue. Makes sense.

Not so fast.

1) It is complicated. It has progressives rates that start out higher for 2 years then decreases but coincides with how the base is calculated.

2) The budget projections assumes no behavioral changes from the taxed residents. This doesn't seem like a safe assumption. You should at least assume some amount of the tax base leaves since it disincentives 2nd properties.

This doesnt mean its a bad plan. But it's definitely not the least complicated tax law. I'd say thats more like sales tax or something.


> Then the government has the choice of taxing them at the scheduled rate, or buying the property from them, for that cost.

Uhh... what? How is this not an insane system?

1. You give an accurate, good faith projection.

2. Government taxes you.

   OR
Government buys your house. Weird. You buy a comparable house with the proceeds.

3. Repeat.


The government would only buy your house if you underestimated the value of your property. You wouldn’t be able to buy a comparable house with the proceeds because it got sold for much less than it was worth.

>The government would only buy your house if you underestimated the value of your property.

Nope, that's not in the rules. It's up to their discretion.

It seems like you agree it would be bad for the government to be able to buy your house when you give an accurate assessment. So why not design it out of the rules?


The option to buy the asset is discretionary. The government can buy it for any reason at any price. Furthermore, many of these assets are not commodities. What is the value of a thing for which only one exists?

For the tax authority (and the public) it's a win/win:

1. Property is taxed at correct rate (win)

2. City buys property at low cost (win)


Thats not the scenario I detailed. Read it again.

Ignore the downvotes -- that is an insane system.

Tax on wealthy vs. wealth tax.

>What did they expect to happen?

A mixture.

1) They were delusional and thought SAT/ACT scores werent useful signals for selecting qualified candidates.

2) They didn't care and prioritized the ability to admit people based off race and other demographics.

And now they are resolving the dissonance between their mission and admission policy.

Johnathan Haidt detailed this dynamic a long time ago in a lecture at Duke entitled "Two incompatible sacred values in American universities." The incompatible values being "truth" and "social justice."

https://youtu.be/Gatn5ameRr8


Misleading is not analogous with True or False.

Depending on the question, True or False can be objectively right/wrong. Misleading is going to be a judgement call.

This is the inherent problem with "fact checking." It's hard to be completely objective. Even when the question has an objective answer, simply choosing where to look and what facts to verify is itself a bias. Looking at this instead of that, or looking at this but not also this other thing that adds context, etc.

Frankly i think disagreeing often is the expected outcome. Fact checking is jsut kinda bullshit. It's spin dressed up as objectivity. I hope people remember that "fact checking" is a relatively modern thing.


>I would argue that that's been the case for quite some time before AI.

I would agree but it's really minimized the building. More and more time is being spent on pre-coding work.


What models? Last I tried different local modals there was a pretty big difference from frontier.

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