Dem strategist Mark Penn took to X during the wee hours Wednesday morning to warn the public about "the lie of socialism" represented by New York City Mayor Zohran Mamdani, but it's really a cry for help over what's happening to his party.
Before we get to that, however, you need to understand just what a colossal screw-up Mamdani’s pied-à-terre tax really is. Because if what Penn says is correct — and apparently it is — it’s a colossal screw-up by design. And an oh-so-bitter taste of what New Yorkers are stuck with for the next three-and-a-half years.
In a piece headlined "Welcome to Socialism," Penn wrote that Mamdani’s administration "with fanfare" released its list of "960,000 owners of real estate in New York City that have been determined they could owe the pied-a-terre tax because NYC computers have determined they own what was billed as a market value of $5 million or more."
So far, so socialist, right?
But, Penn added, "there are only about one million residential tax lots in New York City so the first question is how did virtually every owner get put on the list?"
Welcome to socialism, indeed.
"The answer is that you are subject to the tax in the first two years if your property has a “DOF valuation” of over $1 million. And so the $5 million figure was a fake," Penn concluded. But here’s where we got to what Penn called "the interesting part" with understatement he must have choked on: "Once you are on the list you have to prove you should not be taxed by showing you are a resident. Or by challenging the valuation."
"Good luck fighting the city bureaucrats on both of these counts. The individual litigation will be massive."
Socialism always starts with "soak the rich" but always ends with "stick it to everybody." Mamdani is notable only for his speed.
But here’s what Penn missed in his piece.
The New York Post reminded readers on Monday that "Mamdani threatened to raise city property taxes by a staggering 9.5% in February unless he was allowed to 'tax the rich' to cover a $12 billion budget gap that was later revised down to $5.4 billion."
The good news is that the hole in NYC’s budget got revised downward by more than $6 billion. The bad news is that "City Hall estimates the pied-à-terre tax would yield $500 million per year." The worse news is that "Democratic city Comptroller Mark Levine’s office said the real figure would be closer to $340 to $380 million." And the worst news is that critics of the tax say that it "could cause property values to plummet."
"Add a tax of 4 to 6 per cent (yes condos are taxed that high now) a year of its DOF value to a condo or coop and that condo won’t be worth that much," Penn explained. "And you can forget about out of town buyers. So this will destroy much of the home values that people have built up."
Mamdani's brand of socialism is taxing everybody for unrealized gains on properties whose value Mamdani will destroy.
Nifty, eh?
He's also the fresh new face of a Democratic Party that has grown so corrupt and stands for so little that Democratic Socialists in cities like New York have taken to wearing it like a skinsuit. They even boast about it, and the most that even an old Clinton hand like Penn can do is whine about it on X.
So the initial burst of pied-à-terre schadenfreude was over Mamdani supporters like Anna Wintour, Woody Allen, and Cynthia Nixon finding themselves on his Enemies of the People list. But today I'm standing in a puddle of my own schadenfreude as top-level Democrats like Penn come to realize just how badly the DSA takeover of their party is going to hurt them.
Recommended: NYC: Begun, the Class War Has
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