The beginning of the conflict is a new real estate tax proposal proposed by Mayor Mamdani and New York Governor Kathy Hockel. If the second house of $5 million or more does not actually live and is held for the purpose of increasing assets, additional taxation will be imposed.
According to the FT, Daniel Rove, chairman of Third Point, a hedge fund industry mogul, said in his X post, “The Mamdani market is fueling class wars,” adding, “Pouring taxes does not make the city prosperous, and you cannot attract capital by demonizing high-value philanthropists.”
Regarding the appearance of a $238 million penthouse owned by Citadel founder Ken Griffin, another hedge fund mogul, in the video announcing the tax plan, Chairman Rove claimed that it was a “malicious identity theft” (Doxing).
During the New York mayoral election last year, Rove donated a massive amount of political funds to block Mamdani from winning the election. Griffin did not return a request for comment on the situation, according to the FT. Pershing Square Chairman Bill Ackman, a hedge fund billionaire, also joined the criticism.
“Griffin paid $238 million through a second house in New York, which is an object of applause, not an attack,” Ackman said in a post on X. “Mayor Mamdani enjoys tax relief for the rich, but this plan will eventually harm the common people he will help.”
Chairman Ackman is also known to have donated $1 million to lose the Mamdani election.
Noble Black, a broker with high-priced real estate company Corcoron, told FT that customers are being asked about moving their homes in New York immediately after the announcement of the tax increase plan.
The taxation plan for the second house is the first major tax policy introduced by Mayor Mamdani since he took office in November last year. Mayor Mamdani said the taxation would generate at least $500 million in additional tax revenues per year, helping the city’s finances, which suffer from billions of dollars in losses. Mayor Mamdani, a Democrat, is the first Muslim mayor in New York’s history and has claimed to be a democratic socialist.
U.S. President Donald Trump said in a post on Truth Social, “Mamdani Mayor is destroying New York…Taxes, taxes, tax policies are really wrong,” he said.
JENNIFER KIM
US ASIA JOURNAL
