Obama's budget & Manhattan RE

Good news for the rental market.

He said he is taking his cue from the fiscal commission (Simpson/Bowles). But the commission recommended REDUCING tax rates, fewer tax brackets and getting rid of the AMT in conjunction with limiting itemized deductions. On net, that would probably have a somewhat negative impact on the NY RE market, but it seems a basically fair trade.

In his speech today he recommended RAISING taxes, limiting deductions, and as far as I can tell said nothing about the AMT. That combination cannot be good (and could be terrible) for Manhattan, sales or rentals.

Rich people can afford it.

Not for long.

How come there isn't a cost of living variable in the "wealthy" tax bracket calculation?

There sort of was and then AMT kicked in and took it away.

"How come there isn't a cost of living variable in the "wealthy" tax bracket calculation?"

What kind of variable are you looking for?

Take the highest cost of living and adjust all the tax brackets down accordingly. If 250K is the definition of wealthy, the equivalent in Chicago should be 135K.

Why?

Just living in a wealthy enclave like Manhattan is a lifestyle choice. If you don't want to incur the higher "cost of living" that Manhattan entails, don't live in Manhattan.

> That combination cannot be good (and could be terrible) for Manhattan, sales or rentals.

I thought finally having a "city" guy was supposed to be good for NYC?

Not living in a wealthy enclave like Manhattan would most likely result in a lower salary. Someone making 150K in Arkansas can certainly afford it(as you say) more than someone making 250K in NY. Isn't that your reasoning? They can afford it?

That's why God invented New Jersey.

AMT was originally created to target what percentage of "rich" Americans? 155 out of 203,302,031 doesn't seem like a big percentage right? What percentage of Americans are hit by AMT now?

CBO predicted that 25 million households could be affected.... out of, what, 100 million households?

Good news for real estate and otherwise. We need to bridge the income bracket. It's too out of whack and will eventually destroy capitalism as we know it if it continues to escalate.

The world does not revolve around nyc real estate. adding a conjunction between and event and nyc real estate does not necessarily create a link or a dependency.

Who will think about the poor multi-millionaires?

a million is the new hundred thousand dollars.

It aint what it used to be.

Is he proposing taxing the wealthiest 2% , or the highest 2% earners. Big difference. Mark Zuckerburg is paying relatively low taxes right now on his enormous wealth creation.

What becomes the cutoff for the 2%?

I am all for taxing the wealthy but I don't think you can have a flat income number like 250K as the definition of wealthy.

250 K for one year is wealthy?

"Wealthy" should be defined as more money than I have, and "high income" as more than my earnings.

That's what all of you mean, right? The alanhart threshold?

Nailed it again.

I am not wealthy nor a high earner but I am against milking a small % of the population to pay for everyone else.

Don't forget to re-elect Obama because he has done such an awesome job for this nation, naught.

"I am not wealthy nor a high earner but I am against milking a small % of the population to pay for everyone else. "

Why not, they managed to milk the 98% to build their massive wealth and empire.