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Top New York businesses that ran through the pandemic are now considering packing their bags worth more than $ 7 billion into proposed new state taxes.
At least 20 finance and technology companies are already ready to move to sunny, low-tax Florida, said Kathyrn Wylde, CEO of the New York Business Partnership. “The legislature’s proposals will move us in the opposite direction by driving away the businesses and tax base needed to do so,” said the powerful real estate council of James Whelan, president of New York.
If the Democratic-controlled state legislature succeeds its proposed $ 208 billion tax and spending plan, New York State will be the country with the most taxes, Wylde lamented.
Top New York businesses that ran through the pandemic are now considering packing their bags worth more than $ 7 billion into proposed new state taxes. (iStock)
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Technical posts – which could so easily be switched to ‘remote’ in 2020 – are particularly vulnerable to relocation. “Technology is currently our most important job creator in New York, and they are already making decisions not to stay in New York,” Wylde said, declining to name names.
Albany policies want to punish the “rich,” Wylde said.
And the cold new tax climate could also mean that high-income New Yorkers who have temporarily fled the city for places like Palm Beach may not return. Wylde said.
Big names on Wall Street have already threatened to pack their bags if Albany transfers a tax on shares, which is proposed in an active bill. The state claims a percentage of the proceeds from each purchase or sale of inventory, or other security, under the measure.
“While New York has remained a center of gravity for the financial industry, many employees of ‘Wall Street’ businesses are migrating to Florida, Texas and other states with a hospitable tax policy,” said Stacey Cunningham, president of the New York Stock Exchange wrote in a Wall Street Journal article last month.
‘The New York Stock Exchange belongs in New York. However, if legislators in Albany get their way, the center of the global financial industry must find a new home, ‘she warned.
Big names on Wall Street have already threatened to pack their bags if Albany transfers a tax on shares, which is proposed in an active bill.
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A Nasdaq spokesman did not return a message about his plans.
The CEO of high-frequency trader Virtu Financial in Manhattan, Douglas Cifu, called a tax on stock transfer ‘stupid’.
“We have an office in Florida, and we’ll be leaving New York State,” he said in a February call. ‘We will never pay one of the New York states [stock-transfer] taxation. ”
Cifu added that the Texas legislature is considering a ban on “any kind of transaction tax.”
According to reports, Goldman Sachs is considering moving its asset management business to Florida and clearing its offices in Palm Beach and Fort Lauderdale. A Goldman representative told The Post on Friday: ‘We are implementing the strategy to find more high-value jobs in the US, but we do not currently have any specific plan to announce. ‘
According to reports, Goldman Sachs is considering moving its asset management business to Florida and wiping out offices in Palm Beach and Fort Lauderdale. (AP Photo / Richard Drew, File) (AP)
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State Senator Alexis Weik, a Republican on Long Island, said: “Instead of keeping New Yorkers in New York, this irresponsible tax and spending policy will continue to drive our residents out of the state.”
The exodus may not be limited to small-asset businesses whose workers export their laptops. New York’s hometown airline, JetBlue, said in a March 11 memo to employees who received The Post that it was “investigating” a certain number of roles to existing support centers in Florida.
Whelan, of REBNY, offered a doomsday prediction as the tax increases go through: ‘We’ve been down this road before. In the 1960s and 1970s, such policies eventually discouraged investment in New York City and led to a reduced tax base and fewer resources for providing government services. The results were devastating – two decades of fiscal problems coupled with increasing crime and unacceptable quality of life. ”