New York City Budget and Tax Policy (with David Westin)

Introduces the segment on New York City's budget fight with Ken Griffin.

David Westin

Whitney Tilson

Going after Ken Griffin by name was a mistake. 1% of NYC taxpayers pay 47% of personal income tax. Driving out the wealthy is counterproductive. The city should roll out a welcome mat.

I do think tone matters, and just out there painting billionaires as evil is really dumb, given that 1% of New York City taxpayers account for 47% of the personal income tax paid in New York City.

Asks about the size of the budget deficit and where to find savings.

David Westin

Whitney Tilson

The core problem is a spending problem, not a revenue problem. The budget has grown faster than inflation. He would start with a 1-2% across-the-board cut, citing examples like $5M for a public restroom and high subway construction costs.

I found it very difficult. And I tried to really get down into the weeds. I mean, you can see $5 million to build a public restroom in a park is 10 times too much. We pay 6 times as much as any city in the world to construct one mile of subway.

Asks about the challenge of keeping young talent in NYC.

David Westin

Whitney Tilson

NYC's brand is special, but AI uncertainty and housing affordability are challenges. Texas is deliberately attracting jobs with court system changes, a stock exchange, and incentives. NYC needs to build more housing and be a champion for business.

JP Morgan today has more jobs in Texas than they do in New York. It's a crazy thing to think about. Ten years ago, that wasn't the case. So the trend is moving in a bad direction.

Asks about the challenge of keeping NYC attractive for young talent and companies.

David Westin

Whitney Tilson

NYC's brand is very special, but it faces challenges from AI uncertainty, housing affordability, and competition from places like Texas. JP Morgan and Goldman Sachs now have more jobs in Texas than in New York.

Texas has been deliberate in its strategy: changing court systems, starting a stock exchange, and providing incentives. NYC needs to build more housing and be a champion for business.

SignalTube