Steve Roth, the chief executive of Vornado Realty Trust, has drawn a sharp line in the sand over New York's newly announced tax on luxury second homes, comparing the political rhetoric surrounding it to hate speech during an earnings call Tuesday.
The billionaire real estate mogul was responding to Mayor Zohran Mamdani's announcement of the state's first pied-à-terre tax on properties valued above $5 million. Mamdani unveiled the policy at the penthouse of Ken Griffin, the billionaire CEO of Citadel, which sold for $238 million, and singled out the property as an example of the problem the tax aims to address.
Roth called the mayor's move a personal attack. "We are all shocked that our young mayor would pull this stunt in front of Ken's home and single him out for ridicule," he said. "This was both irresponsible and dangerous."
His objection extended far beyond the policy announcement itself. Roth equated the phrase "tax the rich" with racist slurs and other hateful language, saying it was "spit out with anger and contempt by politicians both here and across the country." He also grouped it alongside the phrase "from the river to the sea," a pro-Palestinian slogan that has drawn criticism.
Roth argued that the wealthy deserve recognition rather than condemnation. He pointed to Vornado's $560 million in real estate tax payments this year and described the nation's billionaires as embodiments of the American dream who should be "praised and thanked." He contended that the top 1 percent generates half of New York's income tax revenue and serves as the city's largest group of employers and philanthropists.
Despite his criticism of Mamdani's announcement, Roth tempered his tone when discussing the mayor himself, acknowledging that he is "young, smart and energetic." Roth suggested that with minor adjustments, Mamdani's leadership could strengthen the city, and he predicted the mayor would eventually learn that "growing a tax base is a winner and raising taxes is a loser."
Roth then floated the idea of recruiting Griffin to lead an effort to "elect right-minded candidates," signaling his readiness to mobilize politically against tax increases. Roth has a history of political involvement, having backed Donald Trump since 2016 and contributing $150,000 to Andrew Cuomo's campaign.
The mayor's office did not respond to requests for comment on Roth's remarks.
Author James Rodriguez: "Comparing tax policy criticism to racial slurs crosses a line that even billionaires should recognize, but it's the kind of rhetorical escalation now defining the wealth debate in America."
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