• Login
thinkcivics.
Subscribe
Join Us
  • Culture & Society
  • Economy
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World
No Result
View All Result
tc.
  • Culture & Society
  • Economy
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World
Subscribe
Join Us
No Result
View All Result
thinkcivics.
Home Economy

New York’s wealthiest look for exits as state readies hefty tax increase

ThinkCivics Newswire by ThinkCivics Newswire
April 9, 2021
in Economy
Reading Time: 4min read
0
0
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.

Our work relies on the support of readers like you. Please consider supporting us at PayPal or Patreon, to help sustain our journalism.

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.

Get Our Weekly Newsletter and Get Smarter

Receive a weekly recap featuring a curated list of must-read stories.

We agree to have my personal information transfered to MailChimp ( more information )

We will never give away, trade or sell your email address. You can unsubscribe at any time.

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. “I love New York and I was born and raised in New York. I’m going to do whatever I can to try to steady the ship. If I can’t, then I’m going to have to make a decision,” he added.

Florida does not tax personal income. Miami Mayor Francis Suarez told CNBC that he has been in touch with some of New York’s biggest firms, including since details of the tax hikes were announced this week.

“We have been,” Suarez said when asked if he’s heard from New York-based business executives in recent days. “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.”

“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 said. He noted that he’s received a “very receptive” response to his pitch to New York executives and pointed to moves by Blackstone and Starwood Capital into Miami. Blackstone recently signed an office lease in Miami while Starwood moved its headquarters to the city.

JetBlue, which is currently headquartered in Long Island City, New York, is looking at shifting some staff to Florida.

“We’ve hit a critical mass of interest and excitement in Miami and with these big players coming here, people are beginning to understand that this is very real,” Suarez said.

In the budget passed by state lawmakers in Albany and heading to Cuomo’s desk for signature, New York City’s executives would likely see combined local and state personal income tax rates that are higher than those on wealthy California residents.

A spokesperson for Cuomo’s office did not return a request for comment before publication.

Within the more than $200 billion state budget, the top tax rate gets bumped to 9.65% from 8.82% for single filers who make more than $1 million. Those who make between $5 million and $25 million would be taxed at around 10.3% and for those making more than $25 million the rate would be at 10.9%. Wealthy earners are expected to get hit with those new taxes in the next tax season, with the rates expiring in 2027.

As New York executives consider their future living options, the wealthy across the country are facing the threat of the federal corporate tax rate going up under President Joe Biden‘s administration. The president has said he wants to raise the corporate tax rate to 28% in order to pay for his infrastructure plan. Biden has said he’s willing to negotiate on the corporate rate. New York business leaders seeking tax relief via the elimination of the cap on the state and local tax deduction (SALT) have lobbied Biden’s advisors and Sen. Majority Leader Chuck Schumer, D-N.Y.

Those who declined to be named in this story did so in order to speak freely about ongoing private conversations.

A Wall Street executive who has had stints at investment firm Evercore and other similar offices told CNBC that a few friends who already reside in Palm Beach, Florida, are contemplating making it their permanent residence.

An executive at an investment firm noted he’s “thinking about it” when asked whether he’d leave New York altogether.

A media executive who runs a massive public relations firm in New York explained that more than a dozen people he has spoken to are seriously considering leaving the state permanently with taxes for the rich on the rise.

“Moving to Florida is an active and serious conversation with my peers,” this person said. “If my kids weren’t here I would move tomorrow.”

Other locales are also getting a look these days.

A corporate restructuring attorney said he’s considering moving to Washington, D.C., believing he could save money on property taxes there. Property taxes in Washington are drastically less than they are in New York, according to a 2019 study by USA Today.

Kathryn Wylde, president and CEO of the Partnership for New York City, with hundreds of members who represent businesses across the city, told CNBC that business leaders are hearing from employees and potential recruits about the need to set up offices in states outside of New York in order for them to avoid paying higher tax rates.

“What I’m hearing is that those nonresident taxpayers are now demanding from employers that they set up an operation where they can be domiciled so that they don’t have to pay some New York taxes,” Wylde told CNBC in an interview. Wylde’s group sent a letter to Cuomo and state Democratic leaders last month, encouraging them not to raise taxes. The letter did not appear to have much of an impact.

The partnership’s executive committee includes JPMorgan CEO Jamie Dimon, BlackRock CEO Larry Fink, Citigroup CEO Jane Fraser and Blackstone CEO Steve Schwarzman.

Wylde pointed to a conversation she had with an asset manager, which she declined to name, who told her that a potential recruit refused to live in New York City due to the tax increases and this executive is now planning to open offices in Florida.

New York state law says that “if you are a nonresident, you are not liable for New York City personal income tax.”

Read the original article from CNBC.

ThinkCivics Newswire

ThinkCivics researches, examines, and reports on issues that matter most. We deliver explanative, fearless, and insightful analysis for public consumption.

thinkcivics.com

Related Posts

Biden has options beyond a corporate tax hike to pay for infrastructure as negotiations get underway

Biden has options beyond a corporate tax hike to pay for infrastructure as negotiations get underway

April 9, 2021
Biden Asks for $1.5 Trillion In First Budget Request, Including 16 Percent Domestic Spending Boost

Biden Asks for $1.5 Trillion In First Budget Request, Including 16 Percent Domestic Spending Boost

April 9, 2021

Study Finds Biden’s Corporate Tax Hikes Would Cost 1 Million Jobs

April 9, 2021

Weekly jobless claims higher than expected

April 8, 2021
Load More
Next Post
Study Finds Biden’s Corporate Tax Hikes Would Cost 1 Million Jobs

Study Finds Biden’s Corporate Tax Hikes Would Cost 1 Million Jobs

West Virginia Attorney General Threatens Lawsuit Against Biden Administration Over Gun Orders

West Virginia Attorney General Threatens Lawsuit Against Biden Administration Over Gun Orders

How Georgia’s Voting Law Compares to 7 Blue, Purple States’ Laws

How Georgia’s Voting Law Compares to 7 Blue, Purple States’ Laws

Staff Editorials

Governor Brian Kemp Tours Delta Mass Vaccination Site
Culture & Society

Georgia Corporations Cave to Activists On Voter ID Law. Republicans Hit Back Where It Hurts.

by Michael Price, MPA
April 9, 2021
Close Up Of Boxing Gloves
News & Politics

Now Is The Time for America to Make Room for a Third-Party. Voters Deserve Better!

by Samantha DeTurk
April 5, 2021
Vaccine Passports Pose Privacy and Discrimination Concerns Says Health Experts and Digital Privacy Advocates
Health & Science

Vaccine Passports Pose Privacy and Discrimination Concerns Says Health Experts and Digital Privacy Advocates

by Michael Price, MPA
March 29, 2021
Rep. Jackie Speier, House Speaker Pelosi And Congressional Democrats Mark Vote On The Equal Rights Amendment Ratification
Culture & Society

The Left Pushes for Ratification of the ERA with President Biden’s Support

by Josh Herrington
March 25, 2021
The Bipartisan ‘Endless Frontier Act’ Increases Tech Research Spending to $100bn Annually to Outcompete Communist China
Technology

The Bipartisan ‘Endless Frontier Act’ Increases Tech Research Spending to $100bn Annually to Outcompete Communist China

by Keefer Novik
March 24, 2021

Recommended

Biden Defines His Underlying Challenge With China: ‘Prove Democracy Works’

Biden Defines His Underlying Challenge With China: ‘Prove Democracy Works’

2 weeks ago
Senate Narrowly Confirms Xavier Becerra to Lead Health and Human Services

Senate Narrowly Confirms Xavier Becerra to Lead Health and Human Services

3 weeks ago
Biden Plan Spurs Fight Over What ‘Infrastructure’ Really Means

Biden Plan Spurs Fight Over What ‘Infrastructure’ Really Means

6 days ago
Why Progressives and Conservatives Can’t Seem to Agree about Justice

Why Progressives and Conservatives Can’t Seem to Agree about Justice

2 months ago

Categories

  • Culture & Society
  • Economy
  • Editorials
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World
No Result
View All Result

Highlights

Biden Admin Considering Cash Payments to Central America to Control Migration

In 5-4 vote, Supreme Court lifts California’s COVID ban on group Bible study in homes

Will Biden ‘Pack’ the Supreme Court?

McConnell Vs. Trump! Warring Wings Of GOP May Face Off In Alaska Senate Race

What Happened to Biden’s Unity Agenda?

Biden’s border czar is stepping down

What's New

‘Critical Race Theory’ Being Taught at US Army’s West Point: Congressman
Culture & Society

‘Critical Race Theory’ Being Taught at US Army’s West Point: Congressman

by ThinkCivics Newswire
April 11, 2021
0

A Republican congressman said he is looking for answers from the U.S. Military Academy West Point about whether...

As protesters on left and right target public servants at home, one city pushes back

As protesters on left and right target public servants at home, one city pushes back

April 11, 2021
Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

April 11, 2021
Biden Admin Considering Cash Payments to Central America to Control Migration

Biden Admin Considering Cash Payments to Central America to Control Migration

April 10, 2021
In 5-4 vote, Supreme Court lifts California’s COVID ban on group Bible study in homes

In 5-4 vote, Supreme Court lifts California’s COVID ban on group Bible study in homes

April 10, 2021
Facebook Twitter Instagram RSS

Follow us on social media:

About ThinkCivics

We research, examine, and report on issues that matter most. We deliver explanative, fearless, and insightful analysis for public consumption. Our reports are not presented in confusing academic or political language, we speak Main Street English.

Recent News

  • ‘Critical Race Theory’ Being Taught at US Army’s West Point: Congressman
  • As protesters on left and right target public servants at home, one city pushes back
  • Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

Category

  • Culture & Society
  • Economy
  • Editorials
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World

© 2021 ThinkCivics Media. All Rights Reserved.

  • Login
No Result
View All Result
  • Home
  • About
  • Store
  • Contact Us
  • ThinkCivics Plus
  • Contribute

© 2021 ThinkCivics Media. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.