Tax rates in New York and other northern states are outrageous, and many businesses have had enough; they are moving to the Sunshine State.
Florida has a generous tax code, there is no state income tax, and the state has a small corporate tax rate as well. The weather and beaches are also a huge appeal. Who wouldn’t want to move to Florida with those benefits?
Fox Business reported, “According to a study from LendingTree, which analyzed IRS data from 2016, Florida is the number one largest beneficiary from relocations out of all 50 states—by a landslide.”
The Sunshine State drew in a net influx of about $17.7 billion in adjusted gross income (AGI)- most of which (72 percent) came from those aged 55 and older. It is consistently one of the most popular destination for retirees due to affordability and low taxes.
Florida’s $17.7 billion in net AGI dwarfs the remaining 19 states that saw a positive net influx of income—which combined for a total of $19.4 billion.”
Where are most of those businesses coming from?
Not surprising, given the outrageously high taxes the Democrat-run state and city impose on businesses and individuals.
According to the LendingTree study, New York lost the largest amount of adjusted gross income from migration, about $8.8 billion.
The U.S. Census Bureau showed that while Florida received more movers than other states last year, New York’s outflows to the Sunshine State were the highest—67,772 people. New York had the third-largest outflows of any state, with 452,580 people moving out within the past year.
Individuals earning $650,000 can save more than $69,700 in taxes per year by moving from New York to Florida.
Other high-tax states losing income to Florida include Connecticut, Pennsylvania, and Illinois. Connecticut had the largest income loss relative to its overall economy—at $2.6 billion.
Palm Beach County has been one of the counties that have benefited the most from those businesses fleeing high-tax states. The county has become a bastion for financial service companies in particular.
The northern part of the county—Jupiter, Palm Beach Gardens—have seen the highest influx of business.
The influx to Palm Beach began in 2013 when New York raised their taxes and began to tax the wealthy. As taxes continue to go up in the Northeast, the more companies are inquiring about relocating to Palm Beach county.
This migration is likely to intensify after the 2017 tax law signed by President Trump.
Fox Business reported, “this trend has likely only intensified thanks to recent charges to the U.S. tax code. A $10,000 cap on state and local tax deductions has caused an exodus from states like New York, Connecticut and California—where tax burdens were already onerous—to low-state tax states like Florida, Texas and Nevada.
The moral of the story: High taxes cause businesses to relocate to low-tax states.
It’s common sense, but the Democrat-run states haven’t caught onto this trend.
The more they tax, the more people they will lose to states like Florida.