Week in Insights: Mansion Tax Debates Won’t End Any Time Soon

Curated by Melanie Cohen

Massachusetts’ plan for a “mansion tax” to address the state’s affordable housing crisis shows how more policymakers are opting for targeted tax policies rather than tackling politically divisive income or capital gains tax overhauls.

Such levies aim to ameliorate market inequities and help pay for affordable housing construction. Similar policies have been implemented elsewhere, with less-than-stellar results.

In Los Angeles, Measure ULA, created by a ballot measure in 2022, was projected to raise $900 million in annual tax revenue. It came in well short of that, raising less than $150 million between April ...