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TaxBuzz Top 5 - NYC's 'Tax the Rich' Campaign Draws Fierce Backlash, San Antonio Considers First Tax Increase in 33 Years & More

by
Rebekah Barton
on
5/8/2026
TaxBuzz Top 5 - NYC's 'Tax the Rich' Campaign Draws Fierce Backlash, San Antonio Considers First Tax Increase in 33 Years & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world. 

1. New York’s New Luxury Home Tax Draws Fierce Backlash From Business Leaders

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Credit: Mario Tama/Getty Images

New York lawmakers have officially reached a tentative budget agreement that includes a new tax targeting luxury second homes in New York City, setting off a heated debate about wealth, business, and the future of the city’s economy.

The agreement, backed by Gov. Kathy Hochul and New York City Mayor Zohran Mamdani, includes a new “pied-à-terre” tax on high-value secondary residences worth more than $5 million. State officials estimate the measure could generate roughly $500 million annually to help fund public services and affordability initiatives. Supporters argue the tax is aimed at ultra-wealthy property owners who use Manhattan luxury properties as part-time residences rather than primary homes. 

The move has triggered sharp criticism from some of New York’s most prominent business and real estate figures.

During a recent earnings call, Steven Roth, chairman of Vornado Realty Trust, condemned the increasingly popular “tax the rich” slogan, comparing it to “disgusting racial slurs.” Roth argued that the rhetoric unfairly demonizes wealthy New Yorkers who already contribute heavily through taxes, philanthropy, investment, and job creation. 

The controversy intensified after Mamdani released a “tax the rich” campaign-style video filmed outside billionaire Ken Griffin’s Manhattan penthouse. Critics in the business community called the move inflammatory and warned it sends a hostile message to employers and investors already questioning New York’s long-term business climate.  The concern among many executives is that increasingly aggressive tax policies could accelerate the migration of wealthy individuals and companies to lower-tax states such as Florida and Texas. Firms including Citadel have already expanded major operations outside New York in recent years, fueling ongoing debate over whether high-tax policies ultimately weaken the state’s economic competitiveness. 

Supporters of the new tax, however, argue that affluent second-home owners can absorb the added costs and that the additional revenue is necessary to support infrastructure, transit, and affordability programs without placing more pressure on middle-class residents. Progressive advocates have framed the measure as part of a broader push to address economic inequality in one of the country’s most expensive cities. 

2. Connecticut Legislature Ends Session With Several High-Profile Bills Left Behind

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Credit: Brian Logan/Getty Images

Connecticut lawmakers wrapped up the 2026 legislative session this week after passing a wide-ranging state budget and dozens of major policy bills, but several closely watched proposals ultimately failed to cross the finish line before adjournment.

One of the highest-profile casualties was Gov. Ned Lamont’s proposal to ban student cellphone use during the school day. The measure passed the Connecticut House with bipartisan support and had become one of Lamont’s top education priorities, but the bill never received a vote in the Senate before the session ended. Supporters argued unrestricted cellphone use harms learning and student mental health, while opponents said school districts should retain local control over classroom policies.

Several tax relief proposals also failed to make it into the final state budget despite months of negotiations. Lawmakers debated ideas that included electric bill rebates, expanded child tax credits, and other affordability-focused relief measures. Legislative leaders reportedly struggled to reach consensus on which programs could gain enough support while still fitting within Connecticut’s long-term fiscal guardrails.

Housing legislation was another major battleground. For the third consecutive year, lawmakers failed to pass expanded renter protections that would have restricted certain “no-fault” evictions. A separate proposal backed by the Lamont administration that would have limited large rent increases immediately following property purchases also stalled before receiving final approval. Tenant advocates argued the measures were necessary to protect renters from displacement and rapidly rising housing costs, while landlord groups warned the bills would unfairly burden property owners and discourage investment.

A controversial proposal to allow supervised safe-injection or “harm reduction” sites for drug users also failed to advance. Public health advocates testified that such facilities could reduce overdose deaths and connect individuals with treatment services, but the measure faced political resistance and skepticism from some lawmakers, including concerns raised by Lamont.

Another closely watched labor bill that would have allowed striking workers to collect unemployment benefits after 14 days was shelved without a final vote despite strong support from organized labor groups. Business organizations and Republican lawmakers strongly opposed the proposal, arguing it could prolong labor disputes and place additional strain on employers.

3. San Antonio Considers First Property Tax Increase in 33 Years Amid Growing Budget Crisis

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Credit: Michael Warren/Getty Images

San Antonio officials are considering raising the city’s property tax rate for the first time in more than three decades as leaders confront a rapidly growing budget deficit tied to slowing property values and rising operating costs.

During a recent budget briefing, city staff warned that San Antonio’s general fund deficit could grow to more than $264 million by fiscal year 2031 if no corrective action is taken. The city’s general fund, which supports core services like police, fire, libraries, and parks, currently totals about $1.7 billion. Officials say expenses are now projected to outpace revenue growth over the next several years.

Although San Antonio’s fiscal year 2027 budget is expected to remain balanced, projections show deficits beginning as early as 2028, with a potential shortfall of roughly $130 million. City Manager Erik Walsh told council members the city may need to fully utilize the maximum annual property tax revenue increase allowed under Texas law — up to 3.5% without voter approval. The discussion marks a major shift for San Antonio, which has not increased its property tax rate in 33 years. In recent years, strong property value growth allowed the city to lower rates while still collecting additional revenue. That trend is now reversing.

According to city officials, taxable values on existing San Antonio properties declined roughly 3.54% this year, while residential construction permits and home sales activity have also slowed. Officials described the situation as unusual for one of Texas’ traditionally high-growth cities.

Walsh emphasized that rising costs tied to employee salaries, healthcare, police and fire services, equipment, and technology are continuing to grow faster than incoming revenue. Even with a potential tax increase, city leaders say spending cuts will still likely be necessary in future budgets.

Not all council members are on board with the idea of raising taxes. Some officials have argued the city should focus more aggressively on cutting spending before asking residents to pay more, particularly as many homeowners continue dealing with high housing and living costs. Others warn that delaying action could create even larger financial problems later.

4. Indiana Expands Gas Tax Suspension as Prices Surge 

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Credit: Grace Cary/Getty Images

Indiana drivers are set to receive more temporary relief at the pump after Gov. Mike Braun announced an expansion of the state’s gas tax holiday amid rapidly rising fuel prices tied to global energy concerns.

Braun announced this week that Indiana will suspend both the state gasoline sales tax and the state gasoline excise tax for 30 days. The move extends a previous suspension of the 7% sales tax on gasoline that Braun implemented in April and now adds the state’s 36-cent-per-gallon excise tax on top of it. Combined, the suspensions are expected to save Hoosier drivers nearly 60 cents per gallon.

“Making life more affordable for Hoosiers will always be my top priority,” Braun said during a press conference announcing the expanded tax relief measures.

The announcement comes as gasoline prices across Indiana have climbed sharply in recent weeks. According to AAA, the average gas price in Indiana rose from roughly $4.14 per gallon in early April to around $4.76 by early May. Some regions of the state briefly approached or exceeded $5 per gallon.

Much of the recent spike has been tied to global oil market instability and refinery disruptions in the Midwest. Reports indicate concerns surrounding tensions involving Iran and disruptions at the Whiting refinery in northwest Indiana — one of the region’s major fuel suppliers — contributed to the sudden increase in prices.

Under Indiana law, Braun can only suspend the taxes temporarily through executive authority. The governor acknowledged that any additional extension beyond the current 30-day period would likely require a special legislative session.

The combined tax suspension is expected to reduce state revenues by more than $100 million, with local governments also projected to lose tens of millions in funding connected to fuel taxes. Critics of gas tax holidays often argue that the savings can be temporary and may reduce funding available for road maintenance and infrastructure projects. Still, the move is likely to be politically popular with drivers as summer travel season approaches.

5. Nebraska Approves Sports Facility Tax Incentives for Omaha, Lincoln Projects While Rejecting Nine Others

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Credit: John Elk/Getty Images

A Nebraska state board led by Gov. Jim Pillen approved tax incentives this week for two major sports facility projects in Omaha and Lincoln, while rejecting nine other proposals from communities across the state in a decision that immediately sparked frustration and accusations of political favoritism.

The approved projects include a proposed $140 million downtown Omaha soccer stadium tied to the professional soccer club Union Omaha and a new volleyball-focused youth sports complex in Lincoln backed by nonprofit Nebraska for Volleyball (N4VB).

The Omaha development would feature a 6,500-seat open-air stadium surrounded by a mixed-use entertainment district with apartments, restaurants, retail, and event space. Supporters say the project could significantly boost tourism and economic development near downtown Omaha and Charles Schwab Field. Meanwhile, the Lincoln volleyball complex would include up to 12 indoor courts and is designed to host tournaments, youth athletics, and training programs.

Both projects will utilize Nebraska’s Sports Arena Facility Financing Assistance Act, commonly referred to as a “turnback tax” incentive. The program allows a portion of newly generated state sales tax revenue within a designated district surrounding a sports facility to be redirected toward paying construction-related costs. For larger cities like Omaha and Lincoln, up to 70% of new state sales tax revenue generated within 600 yards of the facility can be used for project financing.

The approvals mark a notable shift for Pillen, who had previously resisted authorizing many of the sports financing requests. Earlier this year, Nebraska lawmakers passed legislation limiting the governor’s ability to indefinitely delay projects by requiring the board to make decisions within 30 days after public hearings. Pillen defended supporting only the Omaha and Lincoln projects, arguing they offered the strongest return on investment while relying less heavily on state support than some competing proposals. He also emphasized concerns about maintaining Nebraska’s long-term fiscal stability as the state continues focusing heavily on property tax relief efforts.

The board rejected proposals from communities including Gretna, Norfolk, Valentine, West Point, La Vista, Valley, and Douglas County. Several rejected applicants expressed disappointment after waiting more than a year for decisions. Some openly questioned whether political influence played a role in determining which projects received support.

Tony Carrow of Nebraska Elite Volleyball, whose Douglas County proposal was denied, criticized the outcome and questioned the board’s standards for approval. Others argued that many of the rejected projects would have generated new tourism revenue and economic activity without heavily impacting existing state finances.

Which headline this week most interests you?

Feature Image Credit: David Dee Delgado/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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