Wealthy fleeing NY for FLA

Jan. 29, 2013

By John Seiler

From the NY Post:

“The city’s hedge-fund executives are flying south — and it’s not for vacation.

“An increasing number of financial firms, especially private equity and hedge funds, are fed up with New York’s sky-high city and state tax rates and are relocating to the business-friendly climate in Florida’s Palm Beach County.

“And they’re being welcomed with open arms — officials in Palm Beach recently opened an entire office dedicated to luring finance hot shots down south.

“’Florida is a state of choice,’ said Thalius Hecksher, global development chief for Apex Fund Services, who moved many of his operations to Palm Beach. “=’It’s organically grown. There’s no need to drag people down here. It’s a zero-income-tax jurisdiction.’”

The improvement in weather also is significant. By contrast, wealthy folks fleeing California for Florida (or Texas) move into worse weather.

Still, the New York situation is another blow against Gov. Jerry Brown’s contention that rich people won’t flee tax slavery in California for someplace that treats them better.

As the tax receipts come in for the state government over the next few months, we’ll know.

More from the Post:

“Federal tax rates are the same in Florida and New York.

“But there’s no state income tax in the Sunshine State. Compare that to New York, where the state and local governments took $14.71 of every $100 earned in 2010, according to state records.

“The only state with a higher rate is Alaska.

“And Florida residents lost 3.31 percent of their income in total taxes, versus New Yorkers, who pay just over 5 percent, according to the National Tax Foundation’s latest report, which used 2009 Census figures.

“That’s a substantial difference in bottom line for those who stand to make millions of dollars a year in income.

“Also, commercial property values are much cheaper in Florida, and New York City will likely become even less friendly to businesses when Mayor Bloomberg leaves office next year, hedge-fund executives said.”

As with leaving California, moving from New York to the Sunshine State means getting a much bigger home, albeit with a little worse weather. But if the bugs and hurricanes get you down too much, with all the money you save moving there, you can take a long vacation in California, then leave before Gov. Jerry shows up to grab your taxes.

Florida, here they come.