Sunday, March 31, 2019

Millionaires Fleeing New York


It’s an old story. Gov. Cuomo has already been out whining about it. New York State has been losing taxpayers. Considering the something like 1% of the taxpayers pay something like half the taxes in a place like New York City, losing taxpayers will do serious damage to the state budget.

That’s right: high taxes are bad for your fiscal health. Who knew?

The New York Post reports that multimillionaire bankers are fleeing the state… and taking their bonuses with them:

New York City is forecast to shed more multimillionaires this year — with billions in Wall Street bonuses in their wake.

The massive bonus pool typical for city workers is under stress as more bankers and traders bolt for Florida and other states to escape New York’s punishing taxes and steep living costs, according to several pros who have studied the latest compensation data from the state comptroller.

“The governor and mayor don’t want to talk much about highly paid people like bankers leaving New York,” said Alan Johnson, CEO of New York-based compensation consultancy Johnson Associates.

“There are many relocating — and if you see financial service firms expanding in future, it will be to Tampa, Fla., and Austin, Texas, and other places where it’s not as expensive to live as New York,” he added. “It’s showing up in the numbers.”

With the alarming outflow of city residents — many of them wealthy bankers — New York state lost a staggering $8.4 billion to other states in 2016, the latest year data are available, one study shows. And that was up from $4.6 billion annually on average during the prior four years.

Here’s a for instance:

Last year, for example, asset manager AllianceBernstein announced it was moving its headquarters, and 1,050 jobs, from Manhattan to Nashville, Tenn. According to a study by Bankrate, the cost of living is 58 percent lower in the Nashville area than in New York.

“Considering how you can [make] trades from anywhere in America, I don’t see why low bonuses, and an unfavorable state and local tax rate, would make traders want to stay in New York,” said New York city trader Chris Craddock. “I already know a lot who have relocated to Florida and Texas — and they enjoy paying for goods and services state-tax free.”

Tax the rich to support welfare programs and you will end up with lower revenues and fewer rich people. Ain’t telecommunications great?

7 comments:

  1. As I stated a long while ago, there is nothing that happens in NYC that cannot be accomplished somewhere else. There is a high percentage chance that leftists will NOT learn from the mistakes they are making in most of the "Blue" states and try to make those mistakes at the federal level thereby driving everything outside of the US. This has already happened, and the reason Trump's first item agenda was to bring that money back to the US.
    One wonders how many times the Left, and the people who seem to follow them, can make the same mistake. History is replete with the failures of the Left. They destroy everything they touch. Compassion is NOT making people dependent on the government. It is in allowing them to become the best they can be sans government's help. Now there is an oxymoron, government, and help. The government almost always makes thing worse. As one person stated," Please stop helping!"

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  2. Oh, and by the way, PLEASE leave all of those ideas you are running away from in the state where you came from!

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  3. "Better to reign in Hell, then serve in Heav'n." - Democratic Party Platform

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  4. That’s why NY and other blue states are in favor of the new slave trade, ie open borders. Got to find Democratic voters somewhere!

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  5. I'm glad we bought a house in Florida two years ago just before the bottom fell out in NY, CT, NJ, MD . . . I expect a tidal wave of new arrivals here, but unfortunately they bring their pernicious voting habits with them and completely overlook what it was that drove them away in the first place.

    Still own a summer cottage way upstate but still have to maintain official residence there in order to avoid cap gains when we get rid of it. With no fracking and pauperizing land owners in the southern tier (who must react with rage when thinking of their PA counterparts just across the line getting huge royalties and working at new energy jobs), high taxes with now limited federal deductibility, prohibition of plastic bags is the last straw. New York sucks.

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  6. @Anonymous

    That is only one half of the effort. The other is to drive any remaining Republicans out.

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  7. If only NY and NYC could build a fence to keep them in...and stop city and state confiscations of rich folks' money...

    WHAT am I saying? That's CRAZY talk!

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