Billionaire Ken Griffin Blasts NYC's Luxury Tax Plan, Warns of Exodus to Miami

The Proposed Pied-à-Terre Tax

Last month, New York City Mayor Zohran Mamdani fulfilled a campaign promise by unveiling a plan to tax the wealthy. In a video that quickly went viral, he stood outside a towering Manhattan building and announced a new pied-à-terre tax, developed in partnership with Governor Kathy Hochul. The tax targets residential properties valued at more than $5 million that are not used as the owner's primary residence—what Mamdani described as a levy on "the richest of the rich."

The proposal has sparked intense debate, with supporters arguing it will generate much-needed revenue for the city, while critics warn it could drive away the very individuals who fuel New York's economy. At the center of the controversy is a single iconic property and its billionaire owner.

A $239 Million Backdrop

To illustrate the tax's target, Mamdani chose a specific location: the Manhattan penthouse owned by Kenneth Griffin, founder and CEO of Citadel. Griffin purchased the penthouse in 2019 for $239 million—the most expensive residential sale in U.S. history. However, the unit is not his primary residence; Griffin lives primarily in Florida. By using Griffin's building as the backdrop for his video, Mamdani aimed to put a face to the policy. Social media erupted with praise for the mayor's bold move, but one person was far from amused.

Griffin Fires Back

In an interview with CNBC, Griffin condemned Mamdani's video as being in "really poor taste" and argued that the new tax exemplifies everything wrong with New York City. His response touched on several key points.

Discriminatory Taxation

Griffin characterized the pied-à-terre tax as discriminatory against a narrow group of people. He questioned where the city would draw the line, pointing to Citadel's planned $6 billion investment in a new office tower at 350 Park Avenue. "Are they going to now have a special tax rate for those who own office buildings who live out of state?" he asked. "Where does this stop in New York?"

Questioning the $6 Billion Tower

While Griffin said Citadel is still likely to proceed with the Manhattan tower, he warned that the mayor's actions have made the company reconsider its commitments. "We've added several hundred thousand square feet of new space in our new building [in Miami]," Griffin noted. "We will add far more jobs in Miami over the next decade as an immediate and direct consequence of the mayor's poor decision here, with respect to his posting of that video."

Miami: The New NYC?

Griffin has long been an advocate for Florida, where Citadel already has a substantial presence. Florida's lack of a state income tax makes it especially attractive for high earners, and Griffin argues that New York's tax policies will accelerate the shift. "New York City is in a precarious position if they make those who create value feel like they're best off moving their businesses and their lives to other jurisdictions," he said.

The Bigger Picture: Taxing the Wealthy

Griffin's comments highlight a broader tension. According to data, just 1% of New York's registered filers accounted for 40% of the state's income tax in 2022. This heavy reliance on top earners means that policies perceived as hostile to the wealthy could have outsized consequences. Meanwhile, Miami—already a growing financial hub—stands ready to welcome those who choose to leave.

The pied-à-terre tax, if enacted, would apply to thousands of luxury properties across the city. Proponents estimate it could raise hundreds of millions of dollars annually for public services. But for Griffin and others like him, the message is clear: New York's days as the undisputed business capital of America may be numbered.