Vornado Realty Trust CEO Steven Roth delivered a sharp rebuke of the phrase “tax the rich,” responding to New York Mayor Zohran Mamdani’s viral video that singled out billionaire Citadel founder and CEO Ken Griffin, a partner of Vornado’s on an office tower project.
“I consider the phrase ‘tax the rich,’ when spit out with anger and contempt by politicians both here and across the country, to be just as hateful as some disgusting racial slurs,” Roth said Tuesday on the company’s first‑quarter earnings call. “What these politicians seem to be saying is that the rich are evil, or the enemy, or the targets, or maybe even just suckers.
“The rich whom the politicians are targeting started with nothing, are the epitome of the American dream. They are our largest employers and largest philanthropists, and it is the 1% that pay 50% of New York’s income taxes. They are at the top of the great American economic pyramid for a reason. They should be praised and thanked.”
Mamdani, a self-described democratic socialist elected in November, has faced widespread criticism from city business leaders. Roth’s comments came in response to a video released April 15 and titled “Happy Tax Day, New York. We’re taxing the rich.” The video argued that luxury residences owned by nonresidents should face additional taxes.
Citadel also recently criticized Mamdani’s video, while signaling that its planned $6 billion development of 350 Park Ave. — a skyline-shaping office project tied to Griffin and in partnership with Vornado and Rudin — is not a foregone conclusion.
‘We pay our fair share’
“I do unambiguously stand with” Griffin, said Roth, who noted he was a New Yorker born in Brooklyn, on the call. “Vornado is a New York company, and I am a New Yorker. … My daughter and three granddaughters live in the Bronx, and my son and his family live in Brooklyn. My wife of 56 years and I live and work in Manhattan. We follow the rules, and we pay our fair share."
Mamdani's video was shot outside 220 Central Park South, a Vornado‑developed tower where Griffin owns a four‑floor penthouse he purchased in 2019 for $238 million, said to be a record‑setting residential sale to date.
“The ugly, unnecessary video stunt is personal to Ken Griffin and sort of personal to me, too. … We are all shocked that our young mayor would pull this stunt in front of Ken Griffin's home. … This was both irresponsible and dangerous. … Our mayor is young, smart and energetic. … He will learn over time that growing a tax base is a winner and raising taxes is a loser. The hardworking 1% are allies, not enemies.”
CoStar News reached out to City Hall for comment but didn’t hear back.
Video called ‘creepy and weird’
Griffin, speaking Tuesday at the Milken Institute Global Conference, described Mamdani’s video as “creepy and weird,” saying he watched it three times.
“It’s a triggering of a trauma I experienced in Chicago,” Griffin said, referring to rising crime and political dynamics that ultimately made it difficult for Citadel to recruit talent and led the firm to relocate. Griffin moved himself and Citadel’s headquarters from Chicago to Miami.
“When we moved from Chicago, there was a debate between Miami and New York. It’s unquestionably true we made the right choice,” Griffin said. Regarding 350 Park, he said it’s “still a point of discussion internally.”
Citadel, for its part, has noted that over the past five years the firm’s principals and employees — including nonresidents — have paid nearly $2.3 billion in New York City and state taxes, with those revenues supporting public services such as infrastructure, schools, parks and first responders. Griffin himself also is a major contributor to various charities and nonprofits in the city.
On Vornado’s call, Roth pointed to Seattle-based Amazon’s failed plan for a second headquarters, dubbed HQ2, in New York as a warning of political hostility pushing major employers and investments away. The company scrapped its New York HQ2 after a backlash from local officials and community groups over tax incentives, labor concerns and neighborhood impact.
“The body politic doesn't seem to have any remorse about losing Amazon,” Roth said. “On the other hand, the body politic thinks that the Citadel team is important and an enormous contributor. There is a significant feeling among the political leadership and the business leadership that this was a mistake, which I described as a blunder. This is something that should be repaired.”
Tower project underway
While Citadel has hinted that the planned 1.85 million‑square‑foot tower at 350 Park is not yet assured, Roth offered a strong signal that the ground-up development is likely to proceed.
Demolition of the existing building began just days ago, and “it’s a good bet that we will go all in,” Roth said, referring to Vornado’s expected participation in the project joint venture with Griffin.
Even though New York Gov. Kathy Hochul has expressed support for Mamdani’s pied‑à‑terre tax proposal, she has also acknowledged that the relocation of wealthy residents to places such as Palm Beach, Florida, has weakened the state’s tax base.
According to the nonprofit Citizens Budget Commission, million‑dollar earners — less than 1% of New York’s personal income tax filers — already pay roughly 40% of both city and state personal income taxes.
The commission has cautioned that additional tax increases on high earners could undermine “New York’s value proposition” and accelerate the city’s declining share of high‑income residents who “provide significant revenue critical to support services.”
JPMorgan Chase CEO Jamie Dimon recently warned that New York, the nation’s largest property market, risks losing more jobs and businesses as high taxes and rising costs erode its competitiveness.