NYC’s Pied-à-Terre Tax Provokes Billionaire Counterattack

On 15 April 2026, New York City Mayor Zohran Mamdani announced a municipal “pied-à-terre” tax on second homes valued above $5 million. The announcement was made in a video filmed before the $238 million penthouse owned by Citadel founder Ken Griffin. Vornado Realty Trust, led by CEO Steve Roth, reported $560 million in real-estate taxes this year and noted that the city’s top 1 % of earners contribute roughly half of New York’s income-tax revenue.

The Guardian

City officials say the tax addresses a “fundamentally broken” system that favors extreme wealth. Expanding the base to high-value secondary residences is intended to raise revenue for services and narrow the fiscal gap between affluent owners and working-class residents.

The Guardian

Press secretary Joe Calvello said the tax system “rewards extreme wealth while working people are pushed to the brink” and stressed the mayor’s aim to support “business owners and entrepreneurs who create good-paying jobs.” Roth replied that Vornado “followed the rules and paid its fair share,” called the phrase “tax the rich” “just as hateful as some disgusting racial slurs,” and described the wealthy as “largest employers and largest philanthropists.” He also noted support for Donald Trump and a $150,000 donation to Governor Andrew Cuomo, and suggested drafting Griffin to lead a “right-minded” candidate effort.

The Guardian

Roth called the mayor’s announcement a “stunt,” labeled the policy “irresponsible and dangerous,” and equated the phrase “tax the rich” with racial slurs and the “river to the sea” slogan. He argued that higher taxes on the affluent would harm job creation and asserted that “the hard-working 1 % are allies, not enemies.”

The Guardian

• “just as hateful as some disgusting racial slurs” — Steve Roth, CEO, Vornado Realty Trust

The Guardian

• “We are all shocked that our young mayor would pull this stunt in front of Ken’s home and single him out for ridicule,” — Steve Roth

The Guardian

• “That does not negate the fact, however, that our tax system is fundamentally broken. It rewards extreme wealth while working people are pushed to the brink,” — Joe Calvello, Press Secretary

The Guardian

• “They are our largest employers and largest philanthropists, and it is the 1% that makes 50% of New York’s income taxes.” — Steve Roth

The Guardian

Roth’s claim that the top 1 % pays half of state income taxes lacks independent verification, and the sources provide no projected revenue figures for the pied-à-terre tax or its expected impact on housing affordability.

The Guardian

The tax requires New York City Council approval before implementation. Roth indicated he may mobilize business leaders to support “right-minded” candidates, suggesting a potential political response to the mayor’s reform agenda.

The Guardian