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New York City Mayor Zohran Mamdani\u2019s first budget proposal since taking office has stirred up some strong reactions. Among the vocal critics is Shark Tank investor Kevin O\u2019Leary.<\/p>\n
\u201cWhat he\u2019s proposing is beyond insane,\u201d O\u2019Leary said in a recent appearance on CNN (1).<\/p>\n
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O\u2019Leary was specifically referring to proposed tax increases on new York\u2019s wealthiest driving millionaires and more to Florida. In a press briefing unveiling his preliminary budget, Mamdani said that if he\u2019s unable to persuade Gov. Kathy Hochul to raise taxes on the wealthy he could be forced to raise property taxes by 9.5% (2).<\/p>\n
Now, at May 7 press conference, Hochul\u2019s office has announced the state\u2019s 2027 budget (3). Notably, it featured Mamdani\u2019s signature pied-\u00e0-terre tax on investor properties and second homes with a value of over $5 million, which is expected to generate $500 million in annual revenue. However, the budget also didn\u2019t \u201craise income or statewide business taxes.\u201d<\/p>\n
It remains to be seen how this will impact Mamdani\u2019s 9.5% option of last resort, but it seems to be a bit of good news for a beleaguered Big Apple.<\/p>\n
If Mamdani still raises property taxes, it would affect more than 3 million residential units and over 100,000 commercial buildings across the city (4). He acknowledged the move would not only hit wealthy residents, but \u201ceffectively be a tax on working- and middle-class New Yorkers who have a median income of $122,000 (2).\u201d<\/p>\n
O\u2019Leary didn\u2019t hold back when reacting to the original proposal.<\/p>\n
\u201cThis is bat poopoo crazy,\u201d he said, adding that, rather than cut spending, Mamdani will simply \u201ctax you into oblivion.\u201d<\/p>\n
He also argued the policy could accelerate an ongoing migration trend out of high-tax jurisdictions \u2014 particularly toward Florida, where he lives.<\/p>\n
\u201cProbably sometime next year, within 12 to 18 months, I will meet him in Miami and give him real estate agent of the year award,\u201d O\u2019Leary quipped. \u201cI live in Miami Beach. Everybody from New York and New Jersey and Massachusetts is moving into my neighborhood. I\u2019m pissed off and this guy’s just doing more of it.\u201d<\/p>\n
According to real estate developers, that trend was already gaining momentum even before Mamdani took office.<\/p>\n
In the months leading up to New York City\u2019s mayoral election, Isaac Toledano, CEO of Miami-based developer BH Group, said his firm closed more than $100 million in signed contracts from New York buyers \u2014 about twice the year-earlier volume, according to prior reporting from Moneywise.<\/p>\n
The New York-to-Miami real estate landscape <\/p>\n
Do the facts really bear out O\u2019Leary\u2019s taunting claim that Mamdani is Florida\u2019s best real estate agent? Not so fast, according to a report from the New York Post (5). As of April 2026, while New Yorkers have kept pace with the \u2018moving to Florida\u2019 trend that started during the pandemic, most of these are hedging their bets when it comes to real estate.<\/p>\n
\u201cUncertainty kept high earners renting,\u201d Jiayi Xu, senior economist at Realtor.com, told the Post, explaining that most of these new arrivals were unsure how long they\u2019d stay in Florida. Added to this, inflated home prices made even high earners wary of buying.<\/p>\n
\u201cHigh-income, price-insensitive tenants who\u2019d rather pay a premium than commit to a purchase\u201d found that buying a starter home in Miami would cost $3,540 monthly \u2014 and renting would cost only $2,511 a month, according to Xu\u2019s calculations.<\/p>\n
Read More: Robert Kiyosaki warned of a ‘Greater Depression’ \u2014 with millions of Americans going poor. Was he right?<\/a><\/p>\n \u2018An obligation to pay as little tax as possible\u2019 <\/p>\n Mamdani campaigned heavily on the promise to raise income taxes on the wealthiest New Yorkers. On a broader scale, whether America\u2019s ultra-rich are paying their fair share of taxes is an issue that has long been debated.<\/p>\n In fact, Mamdani recently made an example of one of New York\u2019s wealthiest, filming a social media post outside billionaire and Citadel CEO Ken Griffin\u2019s $238 million penthouse at 220 Central Park South to explain why the public should support his tax plan (6). The Citadel CEO said in response, \u201cto turn me into a political puppet was just in poor taste, really poor taste (7).\u201d<\/p>\n \u201cWhat really upset me about the video was the fact that it put me in harm\u2019s way,\u201d Griffin said. \u201cHe seems to have forgotten that the CEO of another American company was assassinated just blocks from where I live in New York.\u201d<\/p>\n Now, Citadel is doubling down on Florida by expanding its offices there, according to Reuters (8).<\/p>\n Most of the ultra-rich, like Griffin, build their wealth through assets and deep connections to their companies \u2014 not wages; as the value of these assets rises, their net worth grows.<\/p>\n However, the U.S. tax system isn\u2019t designed to fully capture those gains. Capital gains are typically taxed at lower rates than regular income, and taxes aren’t owed until the assets are sold.<\/p>\n In fact, as NYU Stern professor Scott Galloway once put it, if you\u2019re trying to build wealth, you have \u201can obligation to pay as little tax as possible.\u201d<\/p>\n One asset class America\u2019s wealthy have relied on for decades is real estate \u2014 in part because of the generous tax treatment it receives.<\/p>\n When you earn rental income from an investment property, you can claim deductions for a wide range of expenses, such as mortgage interest, property taxes, insurance and ongoing maintenance and repairs. This is part of the ultra-rich\u2019s secret for capturing as much wealth as possible while minimizing tax exposure.<\/p>\n Real estate investors also benefit from depreciation \u2014 a tax deduction that recognizes the gradual wear and tear of a property over time. Investors can also use tools like refinancing and 1031 exchanges to keep their capital compounding instead of cashing out.<\/p>\n Today, you don\u2019t need to be able to afford a $238 million New York apartment \u2014 or buy a starter home outright \u2014 to invest in real estate. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100<\/a> \u2014 all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment<\/a>.<\/p>\n For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match<\/a>.<\/p>\n Mogul is another option for those with more cash available to invest or who are already comfortable with real estate investing. It\u2019s a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n You can sign up for an account and then browse available properties here<\/a>.<\/p>\n Keep more of what you earn <\/p>\n The wealthy don\u2019t just focus on what they invest in \u2014 they also pay close attention to where those investments sit. Using tax-advantaged retirement accounts can be a powerful way to keep more capital compounding over time.<\/p>\n For seasoned investors with portfolios of $50K or more, you might consider diversifying your nest egg through a flat-fee self-directed retirement account<\/a>.<\/p>\n A self-directed retirement account is a tax-advantaged individual retirement account (IRA) that lets investors allocate funds to a significantly broader range of alternative assets than typical IRAs offered by banks or brokerage firms.<\/p>\n While traditional IRAs limit options to stocks, bonds and mutual funds, a self-directed account allows you to invest in real estate, cryptocurrency, private businesses, precious metals and private lending.<\/p>\n IRA Financial<\/a> gives you the freedom to invest in alternative assets like real estate, private equity, precious metals, and crypto within a self-directed retirement account. And now you can add real-time, public market investing, powered by Interactive Brokers \u2014 a trusted global brokerage.<\/p>\n For the first time, you can manage both traditional and alternative assets seamlessly<\/a> within a single self\u2011directed retirement structure, all for a flat fee.<\/p>\n Complete the application online in minutes<\/a> to open your self\u2011directed retirement account with stock trading access powered by Interactive Brokers.<\/p>\n A structured approach to managing taxes and long-term wealth <\/p>\n For wealthy households, whether in New York, Florida, or anywhere else in the country, creating a sustainable tax strategy and investing for long-term growth are essential goals. Managing your portfolio isn\u2019t a task you should take on alone. Professional help from a fiduciary financial advisor can guide you towards better methods for managing your wealth.<\/p>\n High-income households can work with platforms like WiserAdvisor<\/a> to find the right financial planner to help you manage assets over $250,000.<\/p>\n Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.<\/p>\n From there, WiserAdvisor reviews its network to match you \u2014 for free \u2014 with up to three vetted, reputable advisors aligned with your specific needs.<\/p>\n You can then schedule no-obligation consultations<\/a> with your matches to determine who is the best fit for your long-term goals.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n Article sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Kevin O’Leary (1<\/a>); Forbes Breaking News (2<\/a>); Governor\u2019s Press Office (3<\/a>); NYC.gov (4<\/a>); New York Post (5<\/a>); NYC Mayor\u2019s Office, YouTube (6<\/a>); Milken Institute, YouTube (7<\/a>); Reuters (8<\/a>); Fortune (9<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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