Billionaires Bristle at New York Mayor's Tax Plan: "Demonizing Major Philanthropists"

Billionaires in New York have pushed back against a proposal for a high-value 'second house' tax championed by New York City Mayor Zohran Mamdani.

According to a report by Yonhap News on April 17, citing the Financial Times (FT), the conflict began with the introduction of a new real estate tax plan.

The tax proposal, jointly introduced by Mayor Mamdani and New York Governor Kathy Hochul, seeks to impose an additional tax on individuals who own vacation homes valued at $5 million (approximately 7.4 billion won) or more in New York City.

Zohran Mamdani, New York City Council Member, delivering a 100-day inauguration speech on the 12th (local time) / AP News

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The second house tax plan marks the first major tax policy unveiled by Mayor Mamdani since taking office in November last year. Previously, the mayor's office stated that the tax could generate at least $500 million (739.8 billion won) in additional annual revenue, which would help address the city's multi-billion-dollar deficit.

In response, Daniel Loeb, chairman of hedge fund Third Point, wrote on X (formerly Twitter), "Mayor Mamdani is fueling a class war," adding, "Pouring on taxes does not guarantee prosperity for the city, and demonizing major philanthropists will not attract capital."

Regarding the mention of a $238 million (352.1 billion won) penthouse owned by Citadel founder Ken Griffin, another hedge fund billionaire, Loeb argued that this amounted to "malicious doxxing."

Loeb donated substantial political funds in an attempt to prevent Mamdani's election in last year's New York mayoral race. The FT reported that a spokesperson for Griffin declined to comment on the situation.

Bill Ackman, chairman of Pershing Square and another billionaire hedge fund manager, also posted on X, "Griffin paid $238 million for a second house in New York, and that deserves applause, not attacks." He continued, "While Mayor Mamdani may enjoy the rhetoric of taxing the wealthy, this plan will ultimately harm the very working-class people he claims to help."

Meanwhile, Mayor Mamdani, a Democrat, is the first Muslim mayor in New York's history and has identified himself as a democratic socialist.

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