More and more Manhattan bigwigs have been making their way to Florida in the last few years, David Tepper, Paul Tudor Jones and even Eddie Lampert all saying “Goodbye City Life” for a life on the beach.
Sure, it’s great weather year round but Florida also has a 0% personal income tax rate.
And with Trump’s tax bill, we may see more and more of these high society types giving up their highrises for condos on the beach.
As reported by Zero Hedge:
Meanwhile, as Bloomberg once again points out this morning, the decision to ditch the over-taxed states of New York, New Jersey and Connecticut will be even easier if Trump’s tax plan succeeds in eliminating the state and local income tax deduction…a deduction which could cost a New Yorker making $1,000,000 a year a cool $21,000 in extra taxes.
The problem for the Connecticut hedge-fund set — and, more broadly, for a lot of the Wall Street crowd — is that Republican proposals in both the House and Senate would drive up taxes for many high-earners in the New York City area. By eliminating the deduction for most state and local taxes, an individual making a yearly salary of $1,000,000 — a figure not uncommon in the financial industry — would owe the Internal Revenue Service an additional $21,000, according to a preliminary analysis by accounting firm Marcum LLP.
“It would almost be irresponsible if you weren’t thinking about moving,” he said.
Not surprisingly, Miami is exploiting the potential tax change to woo Manhattan’s most successful “millionaire, billionaire, private jet owners” (to cite Obama) as Miami’s luxury real estate agents say they’re having a hard time keeping up with the sudden surge in demand.
The Miami Downtown Development Authority is throwing a party next month during the annual Art Basel show, and Nitin Motwani, a real estate developer, has invited wealthy Northeasterners who’ve expressed interest in moving to the area. Because the proposed tax changes are practically begging them to relocate, Motwani expects a crowd.
State and local taxes, also called SALT, “can and should be a major catalyst,” said Motwani, a development authority board member. Tax reform will “certainly be something we’re highlighting” at the party, in the Perez Art Museum. “Inertia is a tough thing, but you add on another tax bill and maybe that pushes you over the edge.”
