Ken Griffin, the influential founder and CEO of the prominent hedge fund Citadel, announced on Tuesday his plans to engage in discussions with New York State Governor Kathy Hochul this Thursday. Their conversation will focus on the future path of the state amidst current financial challenges.
Governor Hochul recently introduced a proposal to implement a tax on second homes valued at over $5 million. This initiative, known as the pied-à-terre tax, has gained support from New York City Mayor Zohran Mamdani. It aims to address the city’s looming budget deficit by targeting affluent non-residents who maintain properties in the city.
Citadel, headquartered in Miami, has expressed its opposition to Mamdani’s strategy, particularly his decision to spotlight Griffin in his campaign to levy taxes on wealthy out-of-state property owners in New York City.
In response to Mamdani’s approach, Griffin criticized the mayor’s tactic as a misjudgment, arguing that turning a policy debate into a personal attack is inappropriate. Griffin made these remarks while speaking at a conference organized by Norges Bank Investment Management in Oslo.
With Citadel managing assets worth $67 billion, Griffin emphasized the importance of his upcoming meeting with Governor Hochul to deliberate on the strategic direction New York should take moving forward.
Last week, Mamdani, who identifies as a democratic socialist, released a video titled “Happy Tax Day, New York. We’re taxing the rich,” which was filmed in front of Griffin’s New York penthouse. This move was part of his broader effort to highlight the need for increased taxes on the wealthy.
“Is New York going to put their fiscal house in order and run itself from a position of strong government that’s pro-business? Why do Americans think we can do socialism?,” Griffin said.
Citadel’s principals and team members have paid nearly $2.3 billion in city and state taxes over the past five years, Citadel Chief Operating Officer Gerald Beeson said in an internal memo seen by Reuters last week.
