Mayor Zohran Mamdani’s video celebrating the pied-Ã -terre tax plan outside a prominent billionaire's Central Park South home is sparking a backlash from members of New York City's business community who say the mayor went too far in an era of increasing political violence.
Kathy Wylde, a longtime power broker between City Hall and business leaders, said Mamdani's video outside hedge fund CEO Ken Griffin's 23,000-square-foot penthouse comes amid genuine safety concerns among executives. Last summer, a gunman killed four people and himself at a Midtown building that housed NFL offices and the investment giant Blackstone. Luigi Mangione is awaiting trial for the alleged assassination of an insurance CEO in Midtown in 2024.
“In the current political environment, you can't personalize policy issues without negative repercussions, as we saw with the UnitedHealthcare CEO,†said Wylde, who now works at the lobbying firm Invariant.
The controversy risks further inflaming the democratic socialist mayor's tensions with the business community. Mamdani campaigned on raising taxes on the wealthy and corporations to make the city more affordable, often through social media like the one outside Griffin's $238 million home. The video was released shortly after Gov. Kathy Hochul floated the pied-Ã -terre tax plan, giving Mamdani a significant political victory.
“This pied-à -terre tax is specifically designed for the richest of the richest, those who store their wealth in New York City real estate but don't actually live here,†Mamdani says in the one-minute video with 52 million views on X.
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Some in the business world argued the video amounted to a reckless invasion of privacy.
“Regardless of the circumstances surrounding Ken personally, this is an environment where singling people out is not appropriate for obvious reasons,†Steve Fulop, the head of the Partnership for New York City, said.
The pied-a-terre tax would apply to second homes, like Griffin's, that are worth more than $5 million.
Griffin, who runs the hedge fund Citadel, is a high-profile New York City employer and Republican donor who voted for President Donald Trump. On Thursday, The Wall Street Journal reported Griffin is reconsidering a $6 billion Midtown office project that would create 15,000 permanent jobs in the wake of the mayor's video.
“It is shameful that he used Ken's name as the example of those who supposedly aren't carrying their fair share of the burdens associated with New York City's often costly and wasteful spending,†Griffin's chief operating officer wrote in an email to employees obtained by the Journal. “In doing so, the mayor has once again manifested the ignorance and disdain of the elite political class towards those who have been consistently committed to building one of the greatest cities in the world.â€
Kevin O'Leary, the star of the entrepreneurial reality show Shark Tank, said Mamdani needed to do some “soul searching.â€
“How would he like it if Ken took a video crew outside his house and say, ‘Mamdani lives here. This is where he lives,'†he said during an interview on the cable channel NewsNation. “Think about what that means for personal safety.â€
Mamdani lives in the mayor's residence, Gracie Mansion.
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Other criticism of the video focused on the merits of the pied-Ã -terre tax and the wisdom of attacking a high-profile employer in the city's financial sector.
“Attacking one of the city's largest and most important employers is definitely a strategy, but it's not a good one,†said Howard Wolfson, who worked as a top aide to former Mayor Michael Bloomberg, on X.
“Ken's company is a major employer in NYC of very high paying jobs which drive a considerable amount of our tax base,†said Bill Ackman, a fellow billionaire and critic of the mayor. “We wouldn't want him to move even more employees to Miami.â€
The video appeared to be a hit with Mamdani's supporters. Officials in the mayor's office touted it as the mayor's most watched video.
“It's nice having a politician who actually wants to do s–t,†said Mike Drucker, a comedian who lives on the Upper West Side, on X. “Pretty refreshing. Seems like we should've been doing this the whole time.â€
However, Mamdani has notably not mentioned Griffin when talking about the pied-Ã -terre tax since the video was released.
Asked about the criticism from business leaders on Friday, Mamdani extended an olive branch to the hedge fund magnate.
“I want New Yorkers to succeed. I want them to build businesses, to grow our economy and to create good paying jobs,†he said. “And Ken Griffin has been a part of that as an important employer and business leader in our city.â€
“We all believe in the same city,†he added. “We all want this city to succeed.â€
When asked if he regretted the video, Mamdani defended his remarks that wealthier New Yorkers should contribute more to help close the city's $5 billion deficit. He noted other second homes subject to the proposed tax include luxury condos owned by a “Saudi prince†and “Russian auto dealer.â€
“I say these things not because I do not want these individuals to be here in New York City or to purchase property in New York City, but rather to outline that we are talking about a proposal that will have a very narrow impact,†he said.
Reached for comment on the mayor's remarks, a spokesperson for Griffin, Zia Ahmed, sent a statement that said Griffin “cares deeply about New York City's future.â€
“He is always open to engaging on serious discussions — not political theater — on policies that make the pie larger for everyone, create jobs and help working families,†the statement read.
