May 7, 2026
New York City's future may hinge on a simple but uncomfortable question: Can it afford to lose its richest residents?
Billionaire investor Bill Ackman doesn't think so. And he's making that case amid a growing political chorus demanding new taxes on ultra-wealthy New Yorkers.
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The debate has intensified around New York's Mayor Zohran Mamdani, who is calling for higher taxes on billionaires to help fund childcare programs and close budget gaps.
Mamdani is proposing a "pied-à-terre" tax on high-value second homes, like hedge fund CEO Ken Griffin's $238-million penthouse, which Mamdani points to in a viral 'Tax the Rich' social video (1).
"This pied-à-terre tax is specifically designed for the richest of the rich, those who store their wealth in New York City real estate but who don't actually live here," he said in the video.
In an interview with Bloomberg News, Ackman said by alienating ultra-wealthy taxpayers like Ken Griffin, the city may lose more money than it gains
"If your goal is to make New York City kind of financially solvent, what you don't want to do is drive out the Ken Griffins of the world," he said.
Why billionaires matter more than you might think
Mamdani has focused on Griffin, worth an estimated (2) $50.2 billion, as a symbol of wealth concentration.
The Citadel CEO is not happy about being targeted. He told CNBC (3) that by identifying his building, the mayor had put him in harm's way. It is also affecting his business decisions, he warned.
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Griffin told Fox (4) he was reconsidering construction of a new multibillion-dollar midtown Manhattan development project and considering a corporate move to Miami.
"We need to double down on our bet in Miami because we want to be in a state that embraces business, embraces education, embraces personal freedom and liberty," he said.
Ackman sees the clash as a risky moment for New York City.
"[Griffin] is a major job creator of some of the highest-paid jobs in the city," he said. "He spent a lot of money here. He's given away a lot of money here … hospitals, museums, cultural institutions."
He adds that even a small exodus of high earners could create material budget pressure that can affect all New Yorkers when it comes to funding public services, infrastructure and social programs.
According to data from the Empire Center for Public Policy (5) and Tax Foundation (6), in 2022, the top 1% of New York's taxpayers generated 40% of the city's income tax revenue and 41% of the state's income tax revenue.
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Ackman says the top 1% are supporting as much as 40% of all tax revenue in New York City, including property taxes, and that the top 10% may account for about 75% of that revenue.
"You're not going to make it more affordable by getting rid of the biggest drivers of tax revenues for the city," Ackman said.
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New York isn't alone in facing this dilemma
Cities and states across the country have experimented with higher taxes on wealthy residents (7).
Ackman pointed to California, where some high-net-worth individuals have relocated to lower-tax states like Texas and Florida.
Whether those moves are driven purely by taxes is debatable. But the possibility of relocation has become a central concern for policymakers trying to balance revenue needs with economic competitiveness.
"I'm more of the kind of guy to fight to make sure New York City is a great city than someone who's going to leave," Ackman said.
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Still, his warning is clear: Policies that alienate top taxpayers could have unintended consequences.
What is unknown is what those consequences will be.
If high earners leave, the city could face budget shortfalls that lead to service cuts, higher taxes on remaining residents or both.
On the flip side, if policies successfully increase revenue without driving people away, they could fund programs aimed at affordability and quality of life.
In an interview with CNBC last fall, Ackman did acknowledge that Mamdani was right about affordability issues in the city (8). They just disagree on how to solve the problems.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Instagram (1); Forbes (2); CNBC (3, 7, 8) Fox Business (4); Empire Center for Public Policy (5); Tax Foundation (6)
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Chris Clark is a Kansas City–based freelance journalist covering personal finance, housing and retirement. A former Associated Press editor and reporter, he writes plainspoken stories that help readers make smarter financial decisions.
