Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
New York City Mayor Zohran Mamdani’s first budget proposal since taking office has already stirred strong reactions. Among the vocal critics is “Shark Tank” investor Kevin O’Leary.
“What he’s proposing is beyond insane,” O’Leary said in a recent appearance on CNN (1).
In a press briefing unveiling his preliminary budget, Mamdani said that he would raise property taxes by 9.5% if he’s unable to persuade Gov. Kathy Hochul to raise income taxes on the wealthy (2).
Such a property tax hike would affect more than 3 million residential units and over 100,000 commercial buildings across the city (3). Mamdani himself acknowledged the move would not only hit wealthy residents, but “effectively be a tax on working- and middle-class New Yorkers who have a median income of $122,000” (2).
O’Leary didn’t hold back when reacting to the proposal.
“This is bat poopoo crazy,” he said, adding that, rather than cut spending, Mamdani will simply “tax you into oblivion.”
He also argued the policy could accelerate an ongoing migration trend out of high-tax jurisdictions — particularly toward Florida, where he lives.
“Probably sometime next year, within 12 to 18 months, I will meet him in Miami and give him real estate agent of the year award,” O’Leary quipped. “I live in Miami Beach. Everybody from New York and New Jersey and Massachusetts is moving into my neighborhood. I’m pissed off and this guy’s just doing more of it.”
According to real estate developers, that trend was already gaining momentum even before Mamdani took office.
In the months leading up to New York City’s 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 — about twice the year-earlier volume.
Mamdani campaigned heavily on the promise to raise income taxes on the wealthiest New Yorkers. On a broader scale, whether America’s ultra-rich are paying their fair share of taxes is an issue that has long been debated.
The blunt reality is that most billionaires build their wealth through assets — not wages; as the value of these assets rises, their net worth grows.
However, the U.S. tax system isn’t 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.
In fact, as NYU Stern professor Scott Galloway once put it, if you’re trying to build wealth, you have “an obligation to pay as little tax as possible.”
One asset class America’s wealthy have relied on for decades is real estate — in part because of the generous tax treatment it receives.
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.
Real estate investors also benefit from depreciation — 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.
Today, you don’t need to be a millionaire — or even to buy a single property outright — to invest in real estate. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100 — all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
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’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Mogul is another option. It’s a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.
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, with investments typically ranging between $15,000 and $40,000 per property.
The wealthy don’t just focus on what they invest in — 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.
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 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.
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.
With IRA Financial, you can work directly with experienced retirement specialists. If you prefer making your investments online, their platform and mobile app make it easy to manage your account. They also have an in-house tax team to ensure your investments stay fully compliant with IRS rules.
With over $5 billion in retirement assets under custody, guaranteed IRA audit protection, 25,000+ clients nationwide and a 97% client retention rate, IRA Financial can help you grow your retirement fund with alternative assets.
Simply answer a few questions — including the kinds of assets you would like to invest in and how much you’d like to start with — to prequalify for an account in just 90 seconds.
High-income households can also work with platforms like Range to further reduce their tax burden.
Range is a streamlined, cost-effective way to manage your entire financial life. They offer tax recommendations based on your prior year returns and can evaluate your investment portfolios for tax loss harvesting opportunities, too.
Beyond taxes, Range also offers investment advisory services. While traditional advisors can charge fees from 0.5% to 2% of your total assets under management (AUM), or between $1,000 to more than $3,000 for more comprehensive plans, Range offers flat-fee pricing with 0% AUM fees. That’s a fraction of what you’d pay with a typical CFP.
You can even book a free demo with the Range team after answering a few quick questions about yourself and what you’re looking for from their experts.
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines. Kevin O’Leary (1); Forbes Breaking News (2); NYC.gov (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
