JPMorgan CEO warns of business exodus from New York
Jamie Dimon, CEO of JPMorgan Chase & Co., criticized New York City officials’ proposal to introduce a property tax that would target the city’s wealthiest residents.
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According to Bloomberg, New York City Mayor Zohran Mamdani recently met with a businessman expressing concerns about weakening the city as a global financial hub.
“People think that opposing business will help the city, but that’s not the case,” Dimon said in an interview with Bloomberg TV.
He also added that New York is experiencing a brain drain from the industry, partly due to Texas actively courting companies and investors.
In recent weeks, Mamdani, responding to criticism of tax policy, conducted a series of talks with top business leaders in the city, including David Solomon of Goldman Sachs Group Inc. and Jonathan Gray of Blackstone Inc.
Earlier, the mayor, citing an example of property that could be subject to the proposed fee, repeatedly pointed to Ken Griffin’s penthouse, Citadel CEO, valued at about 238 million USD.
The Wall Street Journal reports that the firm suggested the possibility of withdrawing from a new Manhattan investment and relocating it to Miami, likely due to proposed new tax burdens and fees.
“I think he realized he made a mistake by naming Ken and defaming both his name and the person himself,” Dimon said.
“That’s probably why he’s now meeting with many of us. He may want to improve relations with the business community,” he added.
Dimon stated that he does not necessarily oppose Mamdani and supports part of his agenda, including efforts to increase housing affordability and improve child care systems.
“I hope he learns,” Dimon said.
“I want him to do his job well. I’m not against him,” he added.
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Property tax. Who will the new fee cover?
“Pied-a-terre tax,” a tax on second homes and residences that are not the owners’ primary residence, is one of Zohran Mamdani’s flagship campaign promises, who was sworn in on New Year’s Eve as the 112th mayor of New York City.
The new fee, according to calculations, will bring about 500 million USD in annual revenue.
Both Mamdani and Kathy Hochul, governor of New York State, emphasize that their goal is to eliminate social inequalities exacerbated by many properties being bought by billionaires, often unused as their primary homes.
“I have always said that I believe in taxing the wealthy,” Mamdani said on NBC’s “Meet the Press.”
“This is exactly what taxing the wealthy means,” he added.
We wrote more about this in the article: Property tax returns! Flippers and the wealthiest multi‑apartment owners will pay dearly for luxury.
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Source: Bloomberg, The Wall Street Journal, NBC News.
