Chicago Mayor Brandon Johnson may have ousted Lori Lightfoot from office during the last election, but he hasn’t done anything to improve the lives of Windy City residents. In fact, Johnson is now pushing a “mansion tax” on luxury homes that sell for more than $1 million in price. The problem with this plan is that it has already failed earlier this year in Beverly Hills, CA.
The idea behind a mansion tax is that if you sell your luxury home, the government then gets to take a big cut of your equity for itself, thus reducing your profits and making a mockery of your investment. It’s like calling you a sucker and slapping you in the face, only more expensive. The problem that liberals can never seem to grasp is that people will act out of their own economic self-interest.
Los Angeles County tried a mansion tax that went into effect back in April. It was primarily targeted toward the luxury homes in Beverly Hills. More than 100 mansions were sold in Beverly Hills in March before the tax went into effect. Ever since then, only two or three properties per month have been sold. The hundreds of millions in tax profits that the mansion tax was supposed to generate will never come to fruition because people are simply refusing to hand their hard-earned investment over to greedy politicians.
Chicago’s mansion tax is sure to be passed into law soon, despite the fact that the plan is a proven failure. The plan to implement the mansion tax, in addition to new higher taxes on households earning more than $100,000, has been dubbed “First We Get the Money.” That might be the most honest name for a piece of legislation that the Democrats have ever proposed.