New York City’s newest mayor is making waves — and powerful enemies — with his unapologetic “Tax the Rich” agenda. NYC Mayor Zohran Mamdani, a democratic socialist, has taken a campaign slogan and turned it into active policy since taking office in early 2026, igniting one of the most intense fights in the city’s recent political history.
What Is the Pied-à-Terre Tax?
Mayor Zohran Mamdani and Governor Kathy Hochul introduced New York State’s first pied-à-terre tax. It is an annual levy on one- to three-family houses, condos, and co-ops worth above $5 million. It is aimed at owners who have another primary property outside of New York City.
The bill targets ultra-wealthy out-of-city residents and global elites who utilize New York City real estate as a storage vessel for riches, not as residences. Mamdani’s office says 93% of New Yorkers favor the tax, which aims to help cut the city’s rising budget deficit while safeguarding key public services.
Mamdani and Hochul said the plan would bring in $500 million a year for the city.
The Viral Video That Started the Fire
The controversy escalated when Mayor Zohran Mamdani shared a campaign-style video filmed outside the $238 million Central Park South penthouse of billionaire hedge fund manager Ken Griffin, the founder of Citadel. “That home, when it was purchased, was the most expensive home in the United States of America,” Mamdani said in his video. “This pied-à-terre tax is specifically designed for the richest of the rich, those who store their wealth in New York City real estate, but don’t actually live here.
The video went viral and sparked a firestorm of anger from New York’s business and banking elite.
Billionaires Strike Back
Griffin described the ad as “creepy and weird” and claimed New York “doesn’t welcome success” under Mamdani. In response, he revealed Citadel’s decision to grow in Miami over New York City, drawing parallels to his 2022 pullout from Chicago, which he blamed on violence and anti-business sentiment.
Griffin also threatened to pull the plug on his proposed 350 Park Avenue project, which he says will create 15,000 permanent jobs in Midtown Manhattan.
But the harshest censure came from Steven Roth, CEO of real estate behemoth Vornado. The slogan “tax the rich,” when angrily used by politicians, was “just as hateful” as racist insults, Roth said in a statement that itself attracted enormous notice and backlash.
Roth also stated the targeted rich “are the epitome of the American dream” and dubbed them the biggest employers and donors and said they “should be praised and thanked.”
Zohran Mamdani Response
The mayor’s administration didn’t back down. “All New Yorkers need to win,” said Mamdani’s team. “If we want this city to be a place that working people can afford, we need meaningful tax reform that includes the wealthiest New Yorkers paying their fair share.”
A Broader Budget Push
In addition to the pied-à-terre tax, Mamdani and City Council Speaker Julie Menin also suggested reducing the Pass Through Entity Tax (PTET) credit from a 100% refund to 75%, which they believe could raise over $1 billion in extra revenue. About 95% of the total 2023 PTET credits claimed in New York City were taken by filers with at least $1 million in income.
But Gov. Hochul seemed to draw a red line, stating of the PTET idea, “it’s not happening.”
The Big Picture
Zohran Mamdani “Tax the Rich” policies mirror a bigger national progressive trend but also show fundamental divisions about New York’s economic destiny. Critics fear of capital flight, while proponents believe inequality in the city has reached a breaking point that needs a decisive response.
