New Delhi: New York City Mayor Zohran Mamdani has followed through on one of his key campaign promises: “Tax the rich.”
Keeping in style with his social media-driven campaign, Mamdani announced the proposal across platforms on 16 April. The proposal, backed by Governor Kathy Hochul, seeks to impose what is known as a “pied-à-terre” tax on ultra-luxury homes owned by people who do not live in the city full-time.
Announced on Tax Day, the levy would apply to second homes valued at $5 million or more. Officials estimate it could generate at least $500 million annually, which might then be used for free childcare, street cleaning, and …cleaning, and neighbourhood safety. Mamdani framed this proposal as a matter of equity.
The term “pied-à-terre” is a French phrase meaning “foot on the ground”; it refers to properties used occasionally rather than as a primary residence, often sitting empty for much of the year.
In a video released alongside the announcement, he walks through New York streets at night, pointing to the $238 million luxury penthouse of hedge fund CEO Ken Griffin and Russian biochemist Alexander Varshavsky’s $20.5 million property.
“They’re able to reap the huge financial rewards of owning property in, dare I say, the greatest city in the world. This is a fundamentally unfair system that hurts working New Yorkers,” Mamdani said.
He argued that the “richest of the rich” who store their wealth in New York City real estate, but who don’t actually live here, should contribute more.
The proposal also fulfils a campaign promise made during his 2025 mayoral run, when he advocated for higher taxes on wealthy residents. This is a change in plans from what he proposed during his 2025 campaign. Unlike today’s pied-à-terre tax on $5M+ second homes, it directly hit annual incomes without needing state approval. But since New York City does not have the “home rule” authority to raise its own income tax. As a result, Hochul and Mamdani reached a compromise.
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How the rich responded
The response from Wall Street and the ultra-wealthy has been swift and critical. Hedge fund billionaire Daniel Loeb accused the mayor of “stirring up class warfare” on X, adding that Mamdani was “doxxing” Griffin by highlighting his property. “You can’t tax a city into prosperity, and you don’t attract capital by demonising philanthropists,” Loeb said.
“Our theatre kid Mayor about to learn some cruel laws of economics: you can’t tax a city into prosperity, and you don’t attract capital by demonising philanthropists who can take their investment and employees elsewhere,” the American investor wrote.
Investor Bill Ackman wrote that “We should be applauding Ken for spending $238 million in NYC, not attacking him for doing so.”
“Mamdani likes the tag line ‘Tax the rich.’ Unfortunately, his policies will harm the constituencies he is supposedly trying to help,” he posted on X.
The debate has also drawn national political attention. United States President Donald Trump weighed in on Truth Social, saying that Mamdani was “destroying” New York City.
“The United States of America should not contribute to its failure. It will only get WORSE. The TAX, TAX, TAX Policies are SO WRONG. People are fleeing. They must change their ways, AND FAST. History has proven, THIS ‘STUFF’ JUST DOESN’T WORK. Thank you for your attention to this matter,” Trump added.
According to statements from Hochul’s office, the measure is expected to be included in the state budget this spring. If passed, it would mark the first significant new tax targeting the city’s wealthiest property owners since Mamdani took office in January.
The idea is not entirely new. Versions of second-home or vacancy taxes already exist in countries such as France, the United Kingdom, and Canada, reflecting a broader global debate over how cities should handle underused luxury real estate.
(Edited by Insha Jalil Waziri)