“New York’s top business leaders are gearing up for a potential mass exodus”
New York’s economy was devastated by the pandemic, specifically the lock downs. Thousands of people with the means to do so have already fled the state.
Now the state is planning to raise taxes. Do they really expect people to stay?
Spoiler alert: They won’t.
Brian Schwartz reports at CNBC:
New York’s wealthiest look for exits as state readies hefty tax increase
New York’s top business leaders are gearing up for a potential mass exodus as Gov. Andrew Cuomo and state lawmakers prepare to raise their taxes.
With the state budget set to increase the personal income tax on the wealthiest New Yorkers as well as hiking corporate taxes, some executives who fled the city for Florida temporarily due to coronavirus pandemic lockdowns are considering permanent relocation, according to business leaders briefed on the matter.
Wealthy business leaders who have historically resisted moving at least some of their resources to Florida or other less-taxed states explained to CNBC that they are now seriously reconsidering as working from home becomes the norm, allowing more flexibility.
Tracy Maitland, president of investment advisory firm Advent Capital Management, said that while he still loves his home base, he’s not ruling out departing.
“It’s a consideration,” Maitland told CNBC in an interview Wednesday.
Once again, New York’s loss will be Florida’s gain.
Grace Dean writes at Business Insider:
New York’s wealthiest residents are considering fleeing to Florida ahead of income-tax hikes in the state, according to a report
New York’s mega-millionaires are set to start paying the nation’s highest income-tax rates, and some are already considering moving to states with lower taxes, CNBC reported Thursday.
This includes Florida, which doesn’t have a personal-income tax.
New York Gov. Andrew Cuomo revealed plans on Thursday to hike personal-income tax for those earning more than $1 million, with the wealthiest New York City residents set to pay 14.8%, the highest rate in the country.
Francis Suarez, the mayor of Miami, told CNBC that he’d already spoken to some of New York’s biggest firms about possible reallocations to the city.
“I can’t give names but if you’re looking to know if we’re talking to the biggest firms in New York, we are,” he said.
“Clearly, the toxic climate in New York has led businesses to look to Miami as an attractive place for long-term expansion and relocation,” Suarez added.
I recently had a conversation with someone who works in the financial services industry. She suggested to me that we have not yet begun to see the negative effects the last year will have on New York and other cities.
Here’s the simple truth. The tax rate doesn’t matter if there’s no one there to pay the taxes.
— Manhattan Institute (@ManhattanInst) April 10, 2021
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