Hedge fund giant Citadel has redirected investment from New York to its Miami headquarters after the city's mayor promoted a new wealth tax outside founder Ken Griffin's $285 million penthouse. Griffin told CNBC that the decision to expand office space in Miami was made with no regrets.
Mayor's Video Triggers Backlash
Zohran Mamdani, the far-left mayor of New York, filmed a video outside Griffin's apartment to announce a pied-a-terre tax on second homes worth over $5 million. The tax aims to raise $500 million annually for free childcare, policing, and cleaner streets. However, the video named Griffin and the value of his property, drawing criticism from financiers who warn of an exodus of wealth and investment.
Griffin said the video put him in harm's way, referencing the assassination of a CEO near his home. He added that the city's economic policies could drive away the wealthy, noting that 1% of taxpayers pay 45% of taxes.
Miami Expansion Confirmed
Citadel has filed a permit to expand its 54-story Miami tower, which will break ground next year. The firm will add hundreds of thousands of square feet of office space and create more jobs in Miami over the next decade. Griffin emphasized that the expansion is a direct consequence of the mayor's actions.
Jamie Dimon, CEO of JPMorgan Chase, echoed concerns in his shareholder letter, stating that no city has a divine right to success. JPMorgan has already reduced its Wall Street headcount from 30,000 to 24,000.
The pied-a-terre tax is a key pillar of Mamdani's wealth redistribution agenda, but it has sparked fears that New York may lose its status as a global financial hub to lower-tax cities like Austin and Miami.
