Good Government Backsliding

One of Zohran Mamdani's signature policy initiatives just launched -- a tax on pied-à-terres. The tax would apply to second homes (i.e., those not occupied as a primary residence) worth over $1 million.

I won't claim to be a housing (or tax) policy expert, but this seems perfectly reasonable to me. Admittedly, given the cost of NYC real estate a one million dollar home maybe isn't as opulent as one might imagine elsewhere.  But a one million dollar second home undoubtedly qualifies as a luxury, and it is no foul to ask people who live in luxury to pay a little extra to support the rest of society.

So far, so good. Unfortunately, the rollout of the tax has apparently been beset with problems. The city released a list of 960,000 properties it thought "could" be subjected to the tax, far in excess of the 10,000 units predicted to actually qualify for the assessment. Reportedly, even though the tax is explicitly targeted at second homes, quite a few homeowners received letters telling them they were on the hook for their primary residence. And a relatively quick deadline set for challenging the assessment (near the end of August) has been paired with a malfunctioning mechanism for actually filing the challenge, causing panic amongst a significant quotient of homeowners who were not intended to and should not be covered by the tax:

Ohlerking’s notice said he could apply for an exemption to the tax by submitting proof online that the home was his primary residence. 

But, when Ohlerking, who is blind, logged on to the prescribed website with the help of his friend Jennifer Stadnik, they were met with a nonfunctioning blank white screen.  

So, the pair printed out a cache of documents to take to the Department of Finance’s Brooklyn office—only to be told by employees that the office couldn’t accept Ohlerking’s proof of residency at that time because they were busy setting up a designated intake center for people claiming they wrongfully received pied-à-terre tax notices, Stadnik said.

On Friday, Stadnik said the office called Ohlerking to tell him it would be able to help him on Monday morning.

I'll pause here to say two things. One is that part of good government is good execution, no matter what it is you're doing. Whatever one might think about the policy, the execution seems to have been a screw-up here, and for that the Mamdani administration deserves to take a few lumps. The other is that mistakes happen. No administration ever does everything perfectly. Taking a few lumps is one thing, but stories like this don't on their own justify some sweeping indictment that the Mamdani administration is essentially or uniquely incompetent.

And in an ideal world, that's all that would need to be said. But on BlueSky, I've seen an alarming number of posts not just excusing the rollout mishaps, but taking a tone of sadistic glee that people are being subjected to these mistakes (and an apparently Kafka-esque process for challenging said mistakes). "Oh yes, what a colossal mess, asking wealthy property owners to prove they live in those properties," sneered one journalist. An article in the Free Press titled "Why Mamdani Is Asking My Mom to Pay His Pied-à-Terre Tax" was met with a snarky "I'm guessing he's asking her because she owns a pied-a-terre" -- but the point of the article is that no, she doesn't, this is her primary residence (the author in question is Alex Berenson, and I deeply resent having to say anything remotely defensive on his behalf).

At the risk of being cringe liberal, it is never good to revel in another's suffering for its own sake. If Mamdani's tax is good, it's because it raises revenue from those who can most afford to pay to fund projects necessary for the good of the city as a whole. It's not good because it aggravates people who own lavish second homes in New York that they don't live in. It's certainly not good because it aggravates people who are mistakenly asserted to be owners of lavish second homes in New York that they don't live in. At that point, one is saying that it is good to immiserate the innocent in the service of attempting to immiserate the enemy class. This is not a healthy attitude. Once that sort of atavistic sadism is allowed to let slip, it always leads to dark places.

A few days ago, I said that "Half of Mamdani’s genius is convincing ordinary people that progressive ideas will materially benefit their lives and aren’t scary communism, and the other half is convincing terminally online leftists that basic good government is progressive and isn’t neoliberal shilling for evil corporations." I stand by that, and I don't think this blip falsifies the broader point that for the most part Mamdani genuinely has tried to focus on basic good government and that doing so is part of being a progressive, not a betrayal of it.

But it's pretty clear that many of his supporters, at least, have not quite internalized the lesson yet.