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Several prominent business leaders have publicly expressed their intention to leave New York City or scale back operations if Zohran Mamdani, a 33-year-old democratic socialist, is elected as the city's next mayor.
The threats to leave the Big Apple stem from concerns over Mamdani's proposed progressive policies, which include significant tax increases on businesses and high-income earners, rent freezes, and the creation of city-owned grocery stores.
John Catsimatidis, the 76-year-old billionaire owner of Gristedes Supermarkets, told the Free Press that he would consider closing his supermarkets and selling the business if Mamdani becomes mayor. "We have other businesses," he said, adding, "Thank God, we have other businesses."
Catsimatidis, who also owns Red Apple Group, a conglomerate with assets in real estate, energy, and other industries, threatened to move his corporate offices across the river. "There's a possibility we'd move our corporate offices to New Jersey. Why not?" he said. "Then you'd have four years of peace."
Additionally, business owners are concerned that a democratic socialist with a history of criticizing Wall Street would bring an adversarial mindset to City Hall and target the very class that drives the city's economy. The worries go beyond basic fears about increased taxes or more stringent regulations.
Bill Ackman, the billionaire hedge fund manager and CEO of Pershing Square Capital Management, warned to the Free Press that "it only takes a handful of successful people to leave to decimate the city's tax base." While Ackman clarified he plans to remain in New York City, he indicated that other wealthy individuals would spend more time outside the city to avoid its taxes under a potential Mamdani administration.
"This would absolutely be a tipping point for a lot of companies and individuals," said Ackman, 59, who explained that most of his peers would likely flee to Florida, where the wealthy are "welcomed" rather than "viewed as the enemy."
Zohran Mamdani, a current progressive New York State Assemblyman who has garnered support from Congresswoman Alexandria Ocasio-Cortez (AOC) and Senator Bernie Sanders, hopes to secure the Democratic primary slated for June 24. He is running on a platform that includes a $10 billion tax increase on businesses and wealthy individuals to fund proposals such as: free childcare for children up to 5 years old, free city bus services, rent control, raising the minimum wage to $30 per hour, and city-owned grocery stores to reduce food costs, according to his campaign website.
Ackman added, "If Mamdani becomes the mayor of New York, you're going to see the flight of businesses from New York. Most of the businesses that operate in New York City in the financial sector are incredibly portable."
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