Florida is ready to accept New Yorkers who need a tax haven

Tax reform signed by President Donald Trump is detrimental to New Yorkers, limiting local tax deductions for people with high incomes. This significantly widens the gap between the tax burden on residents of New York and Florida, a state that has no local income tax, writes The New York Post.

Фото: Depositphotos

Florida, which is already a magnet for retirees in New York, is now inviting entrepreneurs and wealthy New Yorkers to their territory who want to avoid financial losses due to fiscal tightening.

Concerns about the flight of wealthy New York taxpayers to Florida and other states with lower tax pressure is quite real, especially given the fact that moving to another state is quite a simple process, according to representatives of business protection groups in New York.

Many wealthy New Yorkers already have homes in Florida where they spend some of their time. This internal migration is so large that the hospitals of New York NYU Langone and Mt. Sinai they opened their clinics there to serve their relocated clients.

The loss of several hundred millionaires can cause significant damage to the budgets of the city and state of New York. 1% of employees with the highest incomes provide to the local budget of the region almost half of all income from income tax.

According to the requirements of the new tax system, a typical family of four who earns 175 000 dollars in New York will give 25% of their income as taxes, compared to 14% taxes for one family of four in Florida.

A Florida resident who earns 10 millions of dollars earns 227 619 dollars in tax benefits and deductions, while a resident of New York who has the same income faces an increase in taxes on 257 177 dollars due to the loss of deductible local taxes introduced by law.

New York State Governor Andrew Cuomo said that limiting local tax deductions to 10 000 dollars, including real estate taxes, "crosses out all the good things we have done in this state, and this will make us much less competitive."

To address the problem, Cuomo has proposed eliminating New York's income tax collection, replacing it with a payroll tax or charitable donations, both of which are deductible. In this way, the governor hopes to protect wealthy New Yorkers from tax increases.

“Many property taxes in New York are over $10. And the people who are above that mark tend to be wealthy and business owners, and we don't want them to leave. If businesses leave, rich people leave, then this tax burden that they bore will fall on everyone else,” Cuomo said.

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