Pigouvian

Reader comment on: Taxation Without Representation

Submitted by Ted (United States), Sep 22, 2014 16:49

One wants taxes that don't distort economic incentives (or, at least creates positive externalities when they distort the incentives). People paying $10 million for a 4000-square foot apartment (and aren't paying income taxes because they don't reside in NY) aren't going to decamp to Connecticut over an extra $100,000/year. That said, that increase in taxes will reduce the value of high-end real estate in New York. And if it's structured properly (I.e., so that permanent residents paying income taxes aren't faced with the hit), it might even sway some people to move back to NY from Connecticut, improving the economy. If there's going to be government spending, there's going to be taxes, and it's hard to imagine a better one if the state legislature isn't going to permit a congestion charge.

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