The Billion-Dollar Feud: Real Estate Titans Compare NYC’s ‘Tax the Rich’ Campaign to Racial Slurs

NEW YORK, NY — A high-stakes war of words has erupted between New York City’s highest office and its most powerful real estate and financial moguls. Mayor Zohran Mamdani, the city’s first Democratic Socialist mayor, has ignited a firestorm with a permanent proposal to tax luxury "pied-à-terre" second homes valued at over $5 million.

While the proposal aims to close a massive $5.4 billion inherited budget deficit, the rhetoric surrounding the campaign has triggered a visceral reaction from the city's business elite. Steven Roth, CEO of Vornado Realty Trust, sparked immediate controversy on Tuesday during an earnings call by comparing the phrase "tax the rich" to the most heinous forms of hate speech.

"I consider the phrase ‘tax the rich’ when spit out with anger and contempt... to be just as hateful as some disgusting racial slurs," Roth stated, further equating the slogan to antisemitic threats.

The $238 Million Trigger

The feud reached a fever pitch after Mayor Mamdani released a campaign-style video filmed directly in front of Ken Griffin’s record-breaking $238 million penthouse. The Mayor singled out the property as a symbol of a "fundamentally broken" system where the ultra-wealthy store wealth in empty residences while avoiding city and state income taxes.

Griffin, the founder of hedge fund Citadel, fired back at a separate conference, describing the Mayor's tactics as "creepy and weird." Griffin claimed the hostile environment has forced him to rethink his commitment to the Big Apple, announcing that Citadel will "double down" on its expansion in Miami instead of Midtown Manhattan.

By The Numbers: The Wealth Gap and Tax Base

The debate is more than just a clash of personalities; it is a battle over the mathematical future of the city. While Mayor Mamdani and Governor Kathy Hochul project the tax will generate $500 million annually, independent analyses suggest a more complex reality.

According to the New York City Comptroller, there are approximately 11,200 to 13,000 second homes that would fall under the new tax regime. However, experts warn that "taxpayer flight" could undermine these gains. New York’s tax base is famously top-heavy:

• Millionaire Liability: As of 2025, the 99,404 "New York source millionaires" (just 0.9% of taxpayers) were responsible for 44.6% of the city’s total income tax liability, or roughly $32 billion.

• The Top 200: A group of just 200 individuals pays approximately 7.7% of the city’s total tax liability, totaling over $5.5 billion.

The Proposed Surcharge Scale

If the legislation passes as proposed in the 2026 budget negotiations, the annual surcharge on second homes would follow a graduated schedule:

• 0.5% on value between $5 million and $10 million.

• 1.5% on value between $10 million and $25 million.

• 4.0% on value above $25 million.

For a $50 million super-tall condo on Billionaires' Row, the annual bill could exceed $1.2 million.

A National Trend

New York is not alone in its pursuit of the ultra-wealthy. As of early 2026, Massachusetts has implemented a surtax on income over $1 million, while Washington State and Rhode Island have advanced similar measures. In California, voters are currently preparing to decide on a landmark measure to tax billionaires directly.

Mayor Mamdani’s office maintains that the goal is not to drive away success but to ensure that those at the "top of the economic pyramid" contribute to making New York affordable for the millions of working-class residents who keep the city running. As the June budget deadline approaches, the "Battle for the Penthouse" shows no signs of cooling down.

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