Weekly Wrap: Immortality is Becoming More Appealing
Happy Friday. This is your weekly recap of the noteworthy happenings.
This week, New York’s mayor unveiled a fresh approach to push out those not in the wealth bracket, while Washington instituted a new dress code. Interestingly, there’s a hint that the housing market might be regaining some stability. Across the Atlantic, Britain decided that Churchill is too contentious for its currency, signaling a prolonged decline in its status. Meanwhile, Adam Smith got criticized by some who might be surprised to learn he actually read his own works. In the financial realm, oil prices surged while stock prices dipped. And somewhere, Zoran Mamdani entertained thoughts of taxing what’s left.
Key Financial Insight: Avoid Dying in New York
New York City Mayor Zoran Mamdani proposed a significant shift regarding the state inheritance tax. The threshold is set to drop from $7 million to $750,000, with the top tax rate climbing from 16% to 50%. Given that the median home price in New York stands at $875,000 and the average asking price at $1 million, this tax would impact over half of the homeowners in the state. In Manhattan, where homes are fetching a median of $1.4 million, almost all homeowners would be affected. Honestly, if you’re alive enough to read this, you likely fall under that tax bracket.
Moreover, the taxation won’t just apply to property values. Even if your home in New York City doesn’t hit the new threshold, your savings and investments might. New York could soon have one of the lowest inheritance tax base amounts in the country. For comparison, Oregon has a million-dollar threshold, which is double its median home price—most states don’t even impose an inheritance tax.
Now, that’s assuming you stay in New York long enough to accrue assets. Keep in mind, Mamdani is also proposing a 9.5% increase in property taxes, pushing it from 12.28% to 13.45%. That translates to an annual hike of about $700 for the average homeowner.
He claims he’d prefer to elevate income taxes on wealthier residents. But let’s not forget, New York already has one of the highest local and state tax burdens nationwide, surpassing even California. Taxing the wealthy further could, well, lead them to reconsider their residency.
While a new inheritance tax increase seems unlikely, why take a chance? So, if you’re planning to, you know, die (which we all eventually do), perhaps consider doing so outside of New York City. The best way to ensure that is to move yourself and your assets out of the Big Apple while you still can.
President Trump’s Footwear Gift
The latest amusing tidbits from Trump’s sphere are less about trade policies or budget concerns and more about shoes. President Trump has taken to gifting $145 Florsheim dress shoes to ministers, advisers, and friends, which has raised some eyebrows—especially when people wonder if he’s actually wearing them. This quirky choice reflects a certain theatricality in his approach to power. It’s not so much about strict ideology but about establishing a shared style among those close to him.
Trump has long recognized that power in Washington often has a performance aspect. Instead of handing out the usual pens or coins, he’s opted for the unusual: corrective shoes. Now, there might be a higher-up in the government sporting a different style—not born from newfound bravery, but perhaps from being nudged to replace their traditional loafers with those deemed acceptable by the president. This is a rather unique form of approval; in this administration, a sign of goodwill may just revolve around what’s on your feet.
The Housing Market’s Resurgence
After a lengthy slumber, the housing market seems to be awakening. Existing home sales in February saw a 1.7% increase, reaching 4.09 million units, outpacing expectations. Housing starts climbed 7.2%, coming in at 1.487 million units. While it’s not exactly a sprint, at least it’s no longer idle on the couch, murmuring about mortgage rates and inventory shortages.
Britain’s Monetary Makeover
In an intriguing shift, Britain plans to phase out figures like Winston Churchill from its banknotes. Instead, they’re opting for less controversial figures, like hedgehogs. After all, hedgehogs have never said anything that might provoke controversy, nor do they harbor any opinions that might stir discomfort. Unlike Churchill, these creatures can defend themselves by curling into a spiky ball—making them rather hard to “cancel.”
And it’s not just Churchill; even literary figures like Jane Austen are being removed.
This reflects a broader trend in British society. First came demands for statue removals, then flags and songs, and now it appears even currency requires a moral cleanse. In this current landscape, while Churchill may have played a pivotal role in history, animals like hedgehogs don’t seem to ruffle feathers.
It’s amusing to critique the British for these choices, but it’s also worth noting that 250 years ago, we fought a revolution for the freedom to do just that. In a nation that prides itself on liberty, we shouldn’t get too self-assured. How long until the faces on American currency come under scrutiny? After all, Andrew Jackson’s image graces the $20 bill, yet his history is troubling. George Washington? He had slaves. What justification is there for honoring him every time we reach for change? Benjamin Franklin? Perhaps it’s time for reevaluation there too. Alexander Hamilton is likely safe—at least while people still think of him as one of the first hip-hop artists.
Oil Prices Surge
This week, crude oil prices topped $100 a barrel, with national average gas prices rising to $3.60 per gallon. The stock market, which has often moved inversely to oil prices, suffered a downturn, with the S&P 500 dipping to its lowest level this year.
This inverse relationship exists because when Americans spend more on gas, they have less to spend elsewhere. It’s a catch-22. In the past, rising oil prices meant more revenue leaving the economy through imports. Now, it more resembles a delayed tax; some funds will eventually trickle back into the economy, but in the meantime, retailers and service providers will likely feel the pinch.
On a somewhat brighter note, as stock prices dip, it potentially lessens the wealth that Mamdani’s tax policies can seize.
Celebrating Adam Smith
This week marked the 250th anniversary of the publication of Adam Smith’s work, **The Wealth of Nations**. Normally, only libertarians and finance types express admiration for Smith, but now, some liberals are leveraging this occasion to criticize President Trump. The **New York Times** even declared, “This is the moment Adam Smith has been waiting for.”
The issue with invoking Adam Smith is that sometimes he is actually read. And then, discussions shift. It turns out that the figure celebrated as a proponent of unbridled trade was genuinely concerned about production and the capabilities that bolster a nation’s wealth. Smith valued production and believed that tariffs could bolster domestic industries—an idea that complicates any simplistic economic position favoring free imports.
