Billionaires face potential new tax under proposed law by economist Mamdani

Here is the rewritten article in a neutral newsroom style:

Zohran Mamdani, a city councilman from Queens, has proposed a tax on pied-à-terre owners in New York City. The tax would apply to individuals who own properties in the city but do not live there full-time.

The proposal has sparked controversy among real estate developers and billionaires, including Elon Musk and Donald Trump. Trump had previously criticized Mayor Eric Adams’ plan to introduce a tax on pied-à-terre owners, calling it “a terrible idea.”

Mamdani responded to Trump’s criticism, stating that the tax would generate revenue for the city and help address issues related to affordable housing.

According to sources, the proposed tax would apply to individuals who own properties in the city worth over $1 million. The tax rate has not been finalized, but estimates suggest it could range from 0.5% to 2% of the property’s value.

The proposal is part of a broader effort by the city to address issues related to affordable housing and gentrification. The city council is expected to vote on the proposal in the coming weeks.

Developers have expressed concerns about the potential impact of the tax on their businesses, while Mamdani argues that it would help generate revenue for the city and support local communities.

The proposal has also sparked debate among lawmakers, with some calling for more taxes to be imposed on real estate developers. The outcome of the vote is uncertain, but the proposal is expected to have significant implications for the city’s real estate market.

Source: Google News World