All because of taxes: New York rich people flee to Florida

New York City's top business leaders prepare for a potential massive move as Gov. Andrew Cuomo and state legislators prepare to raise taxes. Writes about it CNBC.

With a rise in personal income tax for the wealthiest New Yorkers, as well as a rise in corporate taxes, some executives who have temporarily relocated from the city to Florida due to the COVID-19 pandemic are considering moving permanently.

Wealthy business leaders who have historically resisted moving at least some of their resources to Florida or other lower-tax states explained that they are now seriously rethinking their views as working from home is becoming the norm, allowing more flexibility.

Tracy Maitland, president of investment advisory firm Advent Capital Management, said while she still loves her hometown, she doesn't rule out the possibility of relocation.

“This needs to be considered,” Maitland said. - I love New York, I was born and raised in New York. I will do everything in my power to keep the ship afloat. If I can't, then I'll have to make tough decisions. "

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Florida does not tax personal income. Miami Mayor Francis Suarez said he has been in contact with some of New York's largest firms since the details of the tax hike were announced.

Suarez also said he hopes to attract some of the big financial companies from Wall Street to Biscayne Boulevard. Fox News.

Suarez is successfully negotiating with firms such as Blackstone, Goldman Sachs and JP Morgan.

He said he had already seen "an avalanche of people" moving into South Florida from New York, as well as from California.

He also touted Miami's position as one of the safest major cities in the United States, noting that it had the lowest homicide rate since 1954. For its part, New York has been in a similar position for some time, but the Big Apple has seen a surge in violence in recent months.

“We have achieved this thanks to good leadership. We did this with the largest police force in the history of our city. We have achieved this thanks to technology, ”he said. - We have an incredible city that is moving and growing. We also look forward to productive and smart growth in the future. ”

The mayor believed that Miami would soon become one of the most important cities in the United States.

“It's clear that New York's toxic climate has prompted companies to view Miami as an attractive location for long-term expansion and relocation,” Suarez said.

He noted that he received a "very responsive" response to his proposal to the New York leadership, and pointed to the steps of Blackstone and Starwood Capital in Miami. Blackstone recently signed a lease for an office in Miami, while Starwood moved its headquarters to the city.

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JetBlue, currently headquartered in Long Island City, is considering relocating some of its staff to Florida.

“We have reached a critical mass of interest and excitement in Miami, and with these big players coming here, people are starting to realize that this is very real,” Suarez said.

The budget passed by New York State legislators will have combined local personal income tax rates that are higher than the rates for wealthy California residents.

A spokesman for Cuomo's office did not respond to a request for comment.

Under a budget in excess of $ 200 billion, the maximum tax rate rises to 9,65% from 8,82% for individual applicants who earn more than $ 1 million. Those earning between $ 5 and $ 25 million will be taxed at about 10,3. 25%, and for those who earn more than $ 10,9 million, the rate will be 2027%. Wealthy individuals are expected to face these new taxes in the next tax season, with the increase expiring in XNUMX.

As New York City leaders ponder their options for their future lives, the wealthy across the country face the threat of a federal corporate tax rate hike under President Joe Biden's administration.

The president said he wants to raise the corporate tax rate to 28% to pay for his infrastructure plan. Biden said he was ready to negotiate a corporate rate.

The Wall Street executive, who has worked for investment firm Evercore and similar offices, said several friends who already reside in Palm Beach, Florida are considering making it their permanent home.

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One investment company executive commented that he was “thinking about it” when asked if he would leave New York at all.

A media representative who runs a large public relations firm in New York City explained that more than a dozen people he spoke to are seriously considering leaving the state for good, with rising taxes for the rich.

Moving to other regions is also being discussed.

A corporate restructuring lawyer said he was considering moving to Washington, DC, believing he could save on property taxes there. According to the study, property taxes in Washington are significantly lower than in New York.

Catherine Wilde, president and CEO of the New York City Partnership, which has hundreds of members who represent companies across the city, said business leaders are hearing from employees and potential recruits about the need to open offices in states outside of New York to don't pay higher tax rates.

Wilde pointed to a conversation with the asset manager, which she declined to name. He claims that the would-be recruit refused to live in New York due to tax hikes, and the executive is now planning to open offices in Florida.

New York State law states that "if you are a non-resident, you are not required to pay income tax."