Business leaders and Wall Streeters erupt over proposed luxury second-home tax

• Kathy Hochul and Zohran Mamdani have proposed a tax on second homes worth more than $5 million in New York City.

• Critics immediately attacked the proposal, arguing that it would drive wealth away from the city.

• New York hedge fund manager Daniel Loeb hinted at relocation; others called the proposal “class warfare.”

A New York City tax proposal targeting ultra rich homeowners It is receiving harsh reactions from the business world and financial figures.

“NYC is cooked,” Austin-based entrepreneur Jason Calacanis wrote in a post on Zohran Mamdani implemented a plan to tax second homes in the city valued over $5 million.

Mamdani, so-called land tax It’s expected to raise about $500 million a year to fund priorities like child care, transportation and public safety. The tax has not yet become law and implementation dates were not included in the announcement. Hochul said about 13,000 properties would be affected.

The proposal has become a flashpoint in a broader debate over wealth, taxation and New York City’s economic future. Supporters frame the proposed tax as a targeted measure aimed at part-time residents. high value propertiesCritics argue this risks leading to an exodus of wealthy homeowners and investors.

Data from JLL, a commercial real estate firm, shows demand for rental office space in Manhattan has increased and vacancies have decreased since Mamdani took office, continuing a trend that began before he won election last year.

Most of Mamdani economic suggestions Olivia Becker, video director for Mamdani’s office, wrote in a post on

President Donald Trump On Truth Social, Mamdani opposed the idea, saying he was “DESTROYING New York,” while Texas Senator Ted Cruz suggested the proposal would divert wealth away from the city.

“Texas and Florida real estate agents’ phones are ringing…” Cruz wrote to X.

Hedge fund manager Daniel Loeb, who has been based in the city since Third Point’s founding in 1995, retweeted a post from Florida Sen. Ashley Moody showing a close-up of Mamdani’s face from the announcement video and his own comment: “The last thing you’ll see before you move to Florida.”

Loeb’s post underscored concerns shared by some ultra-wealthy that the tax could push capital and high-income earners out of New York.