No. of Recommendations: 9
There’s so much data in this article that I’m posting a gift link. But I will post snips as usual.
https://www.wsj.com/economy/americas-economic-anxi...
America’s Economic Anxiety Is Rising Up the Income Ladder
A Wall Street Journal poll finds that even the wealthiest worry about financial security for themselves and their children
By Aaron Zitner, The Wall Street Journal, June 19, 2026
…
More than 40% of Americans who call themselves upper class or upper-middle class say they haven’t saved enough money to retire comfortably. Only about 40% say their financial security is where they thought it would be at this point in their lives. Nearly three in five say they are strained by high gasoline prices.
Those in the wealthiest classes have lost faith that an economy that has benefited them can lift future generations…
image
image1062×894 157 KB
see https://discussion.fool.com/t/americas-economic-an...
While middle- and working-class Americans signaled the most economic strain, the pessimism felt by the upper classes stood out for having worsened, despite the ways the economy has favored them. Nearly two-thirds of people who consider themselves upper class or upper-middle class have $150,000 or more in annual household income, including 25% with incomes above $250,000…
Rising gasoline prices have erased more than a year of Americans’ wage gains, and anxiety is rising among white-collar workers that artificial intelligence will displace them. Inflation has tamed from the pandemic years, but remains stubbornly above the Federal Reserve’s target of 2%. And consumers are now showing strain, with the share of credit-card balances delinquent for at least 90 days hitting a 15-year high, according to the Federal Reserve Bank of New York…
Across all classes, about one-quarter of respondents said the nation was on the right track, with close to 70% saying it was headed in the wrong direction… [end quote]
Economic growth is being supported by spending by the upper middle and upper class, whose growing stock portfolios produce a wealth effect. Despite growing asset values, even the upper middle class is anxious. Should the stock market decline the economy will collapse like a house of cards since the spenders will clamp down.
Wendy
No. of Recommendations: 14
With the exception of a this slice of the retail economy, the uber-wealthy don't really contribute that much to the general economy. Yes, they buy luxury cars, yachts, vacation and homes which may look like a pile of money, but they consist of relatively few transactions and don't move the overall needle much.
An anecdote:
I had a heated "discussion" with a friend involved in NYC real estate. He contended that the new real estate tax laws would drive valuable big spenders out of the City. My contention is that, if they wanted to contribute to the City, they simply had to become residents of "somewhere" in NY Sate and pay local taxes. Otherwise, their contribution was possibly a few restaurant visits and a couple of purchases at Bergdorf Goodman or Printemps a year and they had the ability to visit NYC's museums without renting a hotel room. (Of course, if they were, say, Russian or Chinese oligarchs hiding money in the largest tax haven in the world, probably even that pittance was missing). The only part of the City's economics which was benefiting was the real estate industry, but the drain of available apartment stock was driving the prices to the point that even the local well-heled couldn't afford the properties.
At the suggestion of its new mayor, New York City now imposes an annual "pied-à-terre" tax on non-primary residences.
Targeted at high-value luxury properties, the surcharge is implemented in two phases based on market value, creating significant new tax obligations and compliance processes for co-op and condo boards.
Phase 1: Temporary Framework (July 2026 – June 2028)During the initial rollout, the Department of Finance (DOF) uses existing valuation methods.
Threshold: Co-ops and condos with a DOF-assessed market value of $1 million or more.
4.0% for values between $1 million and $3 million
5.25% for values between $3 million and $5 million
6.5% for values over $5 million
Phase 2: Market-Value Based (July 2028 – June 2031)
Beginning in mid-2028, the city will transition to a new valuation method using arm's length sales of comparable units.
The threshold for co-ops, condos, and 1-3 family homes will rise to $5 million or more, with the following rates:
0.8% for properties valued between $5 million and $15 million
1.05% for properties valued between $15 million and $25 million
1.3% for properties valued over $25 million
Key Operational Impacts
Co-op/Condo Burdens: The tax is typically assessed on the property as a whole and billed to the co-op or condo entity, shifting the collection burden to the board. If tenant-shareholders default, the entire building can be at risk of a lien.
Determining Exemptions: The DOF uses the address listed on the owner's New York State tax return to determine primary residency. Exemptions exist for full-time tenants, homes occupied by the owner's immediate family, and city properties owned by full-time New York State residents.
So, people ask me how the new mayor is doing, and I currently answer "so far, so good"
Jeff
No. of Recommendations: 7
He contended that the new real estate tax laws would drive valuable big spenders out of the City.
I agree with your overall evaluation. The easiest opinion/analysis I have read said simply” if you tax their income, they can move. If you tax their property, the property can’t move. They can sell it, but so what? If they’re not living there anyway, what have you lost but a few sales of baubles and Dom Perignon.
No. of Recommendations: 0
He contended that the new real estate tax laws would drive valuable big spenders out of the City.
Is this just another vector of the "supply side" mantra of the last 45 years, that the "JCs" must never be "burdened", so costs are fobbed off on the Proles?
Steve
