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Flip side: citizen votes diluted by non-citizen votes. I would not expect this to hold up to a legal challenge
"If the bill is enacted and if it survives legal challenges, New York City would become the largest jurisdiction in the United States to allow noncitizen voting." There are others, then. Which, and why?

And digressing, why did the USA as a country not do this from the start? The founders said "no taxation without representation", why was the choice made to tax people without representation?

I believe "no taxation without representation" referred to the fact that colonists were British citizens, but had no voice in the government

permanent residents can choose to become citizens and thus gain the right to vote; the colonials had no such option

So the condition of residency that triggers taxation is the same that permits becoming a citizen. I see. Makes sense.