Wealthy New Yorkers Eye The Exits As State Prepares Large Tax Hike

New York is still trying to recover from the pandemic and the lock downs. The economy needs help, and yet leaders are preparing to raise taxes.

How is that supposed to help?

Thousands of people with the means to do so have already fled the state. Now more will leave.

CNBC reports:

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.

The Business Insider has more:

New York’s wealthiest residents are considering fleeing to Florida ahead of income-tax hikes in the state, according to a report

A media executive at a large New York public relations firm told CNBC that he had spoken to more than a dozen people who are considering fleeing the state as taxes rise.

“Moving to Florida is an active and serious conversation with my peers,” he told the publication. “If my kids weren’t here I would move tomorrow.”

Kathryn Wylde, CEO of the Partnership for New York City, which works with top business leaders, told CNBC that CEOs were being urged to open offices outside of the state so that staff can avoid the higher tax rates.

Raising taxes is the exactly wrong thing to do in New York right now.

Who is going to pay the taxes when everyone leaves?

 

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