Mamdani plans pied-a-terre tax
Mayor Zoran Mamdani announced plans to tax luxury second homes owned by absentee residents in New York City.
A billionaire reacts right in front of his luxury penthouse after Mayor Zoran Mamdani announced plans to tax the wealthy.
In a social video earlier this month, Mamdani joined Gov. Kathy Hochul to announce the new pied-à-terre tax, the first of its kind in the state.
The mayor stood outside the home of Citadel CEO and billionaire Ken Griffin, which he bought for $238 million, and used it as an example of who would lead the new proposed legislation. The proposal would “impose an annual surcharge on one- to three-family homes, condominiums, and co-ops valued at more than $5 million if the owner has another principal residence outside of New York City,” the city said in a statement.
Griffin’s company issued a statement to employees calling the video “disgraceful,” according to an email first reported by the Wall Street Journal.
Here’s what you need to know about the letter Griffin and his company wrote.
Who is Ken Griffin?
Griffin is the CEO of Citadel LLC, a global hedge fund.
The 57-year-old is one of the richest people in the world, with a net worth of more than $50 billion, according to Forbes magazine.
Griffin bought the penthouse at 220 Central Park South in 2019 for about $238 million, WSJ reported at the time. Set a record for the most expensive home ever sold in the United States
Citadel hits back at Mamdani’s video
Gerald Beeson, Citadel’s chief operating officer, sent an email to employees last week objecting to Mamdani’s use of Griffin’s home in his video imposing taxes on the wealthy.
“It’s shameful that Ken’s name was used as an example of those who don’t seem to be bearing their fair share of the burden of New York City’s often costly and wasteful spending,” Beeson said, according to a WSJ report.
“In doing so, the mayor once again revealed the elite political class’s ignorance and contempt for the people who have consistently worked to build one of the world’s greatest cities.”
He also hinted that Citadel might not carry out any multibillion-dollar projects in the city.
“We are about to embark on the redevelopment of 350 Park Avenue, which will create 6,000 good-paying construction jobs in Midtown New York and support the creation of more than 15,000 permanent jobs,” Beeson said.
“If we move forward with this project, we will need to spend more than $6 billion.”
Mamdani’s office did not immediately respond to USA TODAY’s request for comment.
