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Is investing in New York City a bad thing? Some progressives seem to think so: Theyre looking to tax it.

The left-leaning Fiscal Policy Institute and state Sen. Brad Hoylman are pushing a new tax aimed at foreigners who have the audacity to shell out big money on city apartments.

Under the plan, the city would levy a surcharge of between 0.5 percent and 4 percent on city co-ops and condos worth $5 million or more. The presumption is that most of these units are owned by foreigners and used as pieds--terre.

State Sen. Brad Hoylman (D-Manhattan) says he will introduce a pied--terre bill in the state Legislature soon. The tax is needed, he says, because foreigners arent paying income taxes but are nonetheless utilizing city services everything from our infrastructure to our police force.

Actually, if theyre not in the city using their apartments much, theyre not likely to be using many city services much, either.

So what this boils down to is out-of-town investors handing over money to the city, costing taxpayers little extra and still paying city property taxes. Why would anyone think these folks should pay more?

What Hoylman and the institute really want, of course, is the $665 million a year the tax is expected to raise from folks who dont vote here. But New Yorks sky-high taxes are already a disincentive to invest here. Adding a surcharge will only make matters worse.

Progressives dont understand that having investors spend money here boosting property values and the economy is good for the city. If they did, maybe theyd be calling for lower taxes for a change.

Continued here:
Another city property tax