The new Republican tax plan has America’s wealthy elite starting to sweat over higher levies on their incomes, and it seems that some of them have found a solution, or, at least, an exit strategy: head to the Sunshine State, apply in Florida, and stay there.
Florida, is eager to welcome more taxpayers, is eager to welcome the rich, who are eager to move to the Sunshine State, which, unlike most of the US, does not have a state income tax, on top of having business-friendly revenue codes.
Miami’s Downtown Development Authority has caught wind of this, and is throwing a party sometime in December 2017 in order to attract the wealthier Northeasterners to the area. Brown Harris Stevens’ Director of Luxury Sales, Jeff Miller, says that he’s been receiving calls from potential clients who are eager, if not outright desperate to avoid the higher taxes that would come into play in other states should the Republican tax plan come to pass.
A few miles down the road from President Trump’s Mar-A-Lago estate, in Palm Beach County, the local Florida Business Development Board is openly welcoming financiers with open arms. CEO Kelly Smallridge noted an marked increase in businesses looking to move since the tax bill was revealed.
Smallridge explains that the move for the wealthier Northeasterners is easy due to the fact a great many of them have second residences in Florida. She describes the mass moves and the rich going to apply in Florida as money in the Northeast walking into Florida. She states that the Sunshine State is a familiar and comfortable place for many of the wealthy elite.
The new tax reforms that the wealthy are moving away from eliminate deduction for most of the US’s state and local taxes, with the high-earners getting hit the hardest in states like NY, Connecticut and New Jersey.
Without the deduction from the reform, a New Yorker that earns $1M would owe an additional $21,000 to the IRS. According to Goldman Sachs, the new tax plan, should it pass, would lead to 2-4% of the top-income earners in NYC to move, which would be problematic, as one-percenters are the majority source of income tax in the Big Apple, and their leaving would lead to a shift in the city’s economic structure.