Taxing luxury homes may be perfect solution to fixing America's inner cities

New York

WHILE President Donald Trump talks repeatedly about fixing America's inner cities, it's a good bet that in the coming years, New York and other large metropolitan areas will need to be more self-reliant in solving pressing problems, especially low-income housing.

After all, many big cities face a triple threat: Mr Trump wants to cut funding to sanctuary cities; his nominee to run the Department of Housing and Urban Development, Ben Carson, is unlikely to be a strong and creative leader; and the Republican Congress is eager to chip away at federal housing programmes. In response, cities need local financing initiatives that make up for the coming dearth of federal assistance.

Fortunately, there's an already tested alternative: an annual affordable housing tax, levied on new luxury condos and rentals, which would feed a self-sustaining fund dedicated to develop truly afforda…