NEW YORK (BLOOMBERG) — President Donald Trump said he would examine whether the federal government can stop New York City Mayor Zohran Mamdani\u2019s new pied-\u00e0-terre tax, which was temporarily blocked by a state court.<\/p>\n
Trump in a social media post on Tuesday argued that the policy was costing the city by driving away wealthy people who would otherwise pay taxes there. It\u2019s unclear if the administration has the power to intervene in a state tax matter.<\/p>\n
\u201cI am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late, for the millions of people who cherish New York and want to see it thrive, as opposed to becoming a filthy, crime ridden, decrepit place of mockery and scorn,\u201d Trump posted.<\/p>\n
Trump\u2019s message was his latest broadside against Mamdani, a self-described democratic socialist the president has used as a foil in order to boost Republicans\u2019 prospects in the November midterm elections.<\/p>\n
The question of federal intervention in the tax issue might ultimately become a moot point if a lawsuit filed by a group of homeowners ultimately succeeds in New York.<\/p>\n
Justice Wayne Ozzi on Monday issued a restraining order against the city, barring enforcement of the law pending further proceedings.<\/p>\n
The tax was signed into law in May by Governor Kathy Hochul, and targets single-family homes worth at least $5 million and apartments worth $1 million or more. It\u2019s part of New York leaders\u2019 drive to extract more tax revenue from wealthy homeowners. Mamdani has said the surcharge would help fund city streets and schools and promote safety.<\/p>\n
Roughly 2,000 people have completed applications seeking an exemption from the tax, the city\u2019s Department of Finance said last week.<\/p>\n