CA, US & World
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.
Explore NBCPalmSprings.com, where we are connecting the valley.
By: CNN Newsource
May 6, 2026
Latest Instagram Posts
☕️ Social Time with Thalia & Jerry. What are you going to be for Halloween? 🎃
Labor Day traffic is picking up in Palm Springs. If you’re heading out, our Maria Noble Valdez has what you can expect on the roads here. Be sure to stay tuned with NBC Palm Springs and nbcpalmsprings.com for more Labor Day coverage #LaborDay #LaborDayTraffic #PalmSprings #TrafficUpdate #i10
Who makes the NBC Top 3, winner will be announced Sunday night on NBC Palm Springs, with the player who makes the number one spot winning a $250 prize from @hondaofthedesert! Comment below if it will be 1) Cael Woody with the dot under pressure, 2) Tatum Webster with the pass breakup, 3) Ivan Garza with the rushing TD, 4) Sean Meza with the toe tap, or 5) Jesus. Valenzuela with the strong hands #fypage #fridaynightlights #top3 #hondaofthedesert
Me On A Plate is back! We head over to @tacquila_ps to talk to chef David Arreguin about his love of spice, being the seventh of nine children, and his drive to always follow his passion. Check it out now on our website nbcpalmsprings.com
Nearly a year after wildfires tore through Mountain Center, the scars are still visible along the Palms to Pines Highway. Now, fire crews are working to repair those burn areas and reduce the risk of flooding, erosion and mudslides when heavy rain arrives. The work includes fire-line suppression repairs, water bars and other measures designed to slow rainwater and keep burned soil from washing away. CAL FIRE Riverside County Battalion Chief Ryan Lubin says the steep terrain, dry brush and limited access continue to create challenges for mountain communities. With El Niño conditions expected to bring periods of heavy rain, officials say preparing now could help protect homes and communities from the aftermath of wildfire. The message from firefighters: preparation can save lives. Read the full story at NBCPalmSprings.com. #MountainCenter #Highway74 #PalmsToPines #CALFIRE #Wildfire WildfireRecovery FireSafety CoachellaValley SanJacintoMountains
Gas prices in Riverside County are climbing toward $6 a gallon — and that’s more than $1 higher than this time last year. A 15-gallon fill-up now costs about $86, leaving many drivers wondering how much longer they can absorb the rising cost. On this week’s Roggin Report, Fred Roggin and the panel debate how expensive gas is changing the way people travel, work and live — and why prices are so much higher here. Watch the full conversation at NBCPalmSprings.com. #RogginReport #FredRoggin #GasPrices #RiversideCounty #CoachellaValley
As the Lindsay Clancy trial begins to close, discussions regarding postpartum mental health and postpartum care have began to draw attention to the level of care needed after childbirth. Maria Noble Valdez looked at this discussion locally with a mental health expert and mom here in Coachella Valley. #lindsayclancytrial #pospartum #mentalhealth #760 #nationalnews
EVEN PARKING HAS A VIP SECTION? A mall in Bakersfield is charging shoppers up to $10 a day for preferred parking spots closer to the entrance. So we had to ask: Would you pay for a better parking spot? And could paid parking eventually come to Valley malls? Fred Roggin and the panel weigh in on this week’s Roggin Report. Would you pay $10 for a prime parking spot? #RogginReport #FredRoggin #CoachellaValley #PalmSprings #Parking
📞 Call 760.466.0800 or visit DAPHealth.org to schedule your appointment today! Flu viruses change every year, and getting vaccinated is the best way to strengthen your immune system, lower the risk of severe illness or hospitalization, and protect your loved ones. Sponsored by: DAP Health
A wedding day they’ll never forget. 💍🌊 A couple in the Philippines refused to let monsoon flooding wash away their special day — exchanging vows while standing waist-deep in floodwaters. Talk about making a splash on your wedding day! #WeddingDay #Philippines #Flooding #Monsoon #Wedding #Love #NBCPalmSprings