-
Kathy Hochul and Zohran Mamdani proposed a tax on second homes worth more than $50 million in New York City.
-
Critics were quick to attack the proposal, arguing that it would drain wealth from the city.
-
NY hedge fund manager Daniel Loeb hinted at the move; Others called the proposal “class warfare.”
New York City’s tax proposal targeting ultra-wealthy homeowners is drawing fierce backlash from business and financial figures.
“NYC is cooked,” Austin-based entrepreneur Jason Kalakanis wrote in a post on X, capturing a wave of concern among investors, executives and conservative commentators after Gov. Cathy Hochul and Mayor Zohran Mamdani introduced plans to tax second homes in the city above $5 million.
Mamdani said the so-called pied-à-terre tax is expected to raise about $500 million annually to fund priorities such as child care, transportation, and public safety. The tax has not yet been implemented, and the implementation date is not included in the announcement. Hochul said that about 13,000 properties will be affected.
The proposal has become a flashpoint in a broader debate about property, taxes, and the economic future of New York City. Supporters frame the proposed tax as a measure aimed at part-time residents with high-value properties, while critics argue it risks creating an exodus of wealthy homeowners and investors.
Data from JLL, a commercial real estate firm, show that demand for rented office space in Manhattan has increased and vacancies have fallen since Mamdani took office, continuing a trend that began before he won the election last year.
Many of Mamdani’s economic proposals have sparked great debate, with Olivia Baker, director of video for Mamdani’s office, writing in a post on X that a clip of the mayor announcing the tax posted on April 15 “is now our most-watched video of all time.”
President Donald Trump blasted the idea on Truth Social, saying Mamdani was “destroying New York,” while Sen. Ted Cruz of Texas suggested the proposal would drive wealth out of the city.
“The phones of Texas and Florida realtors are ringing off the hook. . . .” Cruz wrote in X.
Hedge fund manager Daniel Loeb, whose firm Third Point has been based in the city since its founding in 1995, retweeted Florida Sen. Ashley Moody’s post that showed a close-up of Mamdani’s face from the announcement video, along with his own comment, “Last thing you saw before you left for Florida.”
Loeb’s post underscored concerns shared by some of the super-rich that the tax could push capital — and high earners — out of New York.
