US President Donald Trump on Thursday hit out at New York Mayor Zohran Mamdani’s tax policy, saying that he is “destroying New York”. The reaction was in relation to the new Pied-à-terre tax that imposes a surcharge on secondary residences in New York.
In a post on social media platform Truth Social, Trump wrote, “Sadly, Mayor Mamdani is DESTROYING New York! It has no chance! The United States of America should not contribute to its failure. It will only get WORSE.”
Calling the policy ‘so wrong,’ Trump said, “People are fleeing. They must change their ways, and fast. History has proven this “stuff””.
What is pied-à-terre tax?
Trump’s remarks come after Mamdani, on Wednesday, April 15, announced that his administration is planning to introduce a pied-à-terre tax. The tax will impose an annual fee on luxury properties worth more than $5 million, whose owners do not live full-time in the city.
In a video posted by the New York mayor, he said that the pied-à-terre tax is designed for “the richest of the rich.” Those who store their wealth in New York City real estate but who do not actually live there,” Mamdani said.
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Pied-à-t,erre which is a French word, literally translates to ‘foot on the ground.’ It usually refers to a secondary place to live in the city that is not being used as a primary residence.
Under the tax system, a yearly surcharge would be imposed on any New York residential property worth $5 million or more that is not the person’s primary residence.
The surcharge would be paid in addition to the property taxes currently being paid, a New York Times report said. While the details of the remainder remain to be released, the surcharge will likely be based on a sliding scale, the report said. The rates would be based on the value of the property.
Also read: Why does Mamdani want a 50% estate tax? Inside New York’s proposed ‘death tax’ overhaul
Generating funds and filling the budget gap
New York Governor Kathy Hochul also pitched for the pied-à-terres tax, stating that she understands the importance of stabilising the city’s finances without compromising on essential services.”
According to the governor’s office, the tax could generate at least USD 500 million annually, Associated Press reported.
Mamdani, who was elected on a staunchly progressive campaign, is an advocate of taxing the wealthiest New Yorkers to help fund more social programs. At the same ,time, he has been fighting a massive budget gap, which he first put at around USD 12 billion but later revised to about USD 5 billion.
Governor Hochul also revealed that about 13,000 properties would qualify under the tax. While the specific rates have not been set yet, the report said it is under discussion by officials.
(With inputs from wires)