President Donald Trump on Tuesday appealed to New York Mayor Zohran Mamdani to rethink his approach to taxing affluent residents, warning that the city could suffer lasting damage if high-net-worth individuals and executives relocate. Speaking on New York radio with Sid Rosenberg, Trump said losing people like Citadel founder Ken Griffin is "sort of not recoverable" and cautioned that "you never get them back."
The exchange follows a public disagreement between Mamdani and Griffin over the mayor's proposal to impose higher taxes on second homes. Mamdani had highlighted Griffin's $238 million penthouse on Central Park South in a video promoting the tax, referencing the record-setting purchase. Griffin responded by calling the video "creepy and weird" and announced plans to expand a planned Miami tower for his hedge fund.
Griffin previously moved both himself and his firm from Chicago to Miami, citing concerns about crime and public safety in Chicago. That history of relocation forms part of the backdrop to the current debate over New York's tax policy and the potential mobility of wealthy residents.
Trump framed the mayor's proposal as carrying existential risk for the city and state, warning that taxing wealthy residents out of New York could leave "a city left" or "a state left," and described the situation as "very, very dangerous." Despite his criticism of the tax proposals, Trump characterized Mamdani as a "nice person" and said he likes him.
In response to the wider debate, Mamdani on Tuesday dropped plans for an across-the-board property tax increase. However, his proposed levy on second homes remains on the table. The narrower tax approach leaves the specific policy affecting owners of multiple residences intact, even as broader property tax hikes were withdrawn.
Summary of the dispute and recent policy moves:
- Mamdani promoted a tax on second homes and referenced Griffin's Central Park South penthouse in a video supporting the measure.
- Griffin labeled the promotional video "creepy and weird" and signaled plans to expand a Miami tower for his hedge fund; he had previously relocated from Chicago to Miami, citing public safety concerns.
- Trump publicly warned that the loss of wealthy residents and business leaders could be difficult to reverse and described the potential outflow as "very, very dangerous."
- Mamdani abandoned an across-the-board property tax increase but retained the targeted levy on second homes.