Wealthy New Yorkers Ditching the Big Apple for Tax-Friendly Florida
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Affluent New Yorkers are leaving the city in favor of Florida’s more reasonably priced Miami-Dade County.
Reports state that more and more New Yorkers are finding the prospect of annual tax and cost-of-living savings between $20,000 and $120,000 by moving to Florida is an offer they cannot refuse.
Recent changes in the nation’s tax laws have convinced many financially stressed residents of the Big Apple to make the move south.
The New York Post reports:
The federal Tax Cuts and Jobs Act signed into law in late 2017 brought with it sweeping changes that limited deductions on state and local taxes — with taxpayers particularly hard hit in New York, New Jersey and Connecticut, which are among the states with the highest income and property taxes.
However, New York’s liberal policies have also caused residents to leave, which in turn causes a decline in population numbers.
“New York and Florida are similar in size, population, and racial profiles,” writes Kristin Tate, an opinion contributor for The Hill. “Each attracts plenty of immigrants. But years of mismanagement in New York has wreaked havoc on its residents.”
Tate continues:
At the end of the day, the price of staying in New York is nearly double that of a temperate place geared toward the lifestyle of older Americans. Plus, there is no loss in culture or cuisine in moving to Miami or West Palm Beach, with the amenities of modern life available for the thousands of residents who are making the jump from New York to Florida each year.
Tax collectors in New York can also make relocating difficult, causing taxpayers to think twice about their plans.
“Like other high-tax states, New York’s Department of Taxation and Finance will go to great lengths to keep wealthy residents on their tax lists,” Bloomberg reported in 2018.
“The states’ methods can be aggressive: Issuing subpoenas to pore through credit card statements, bank transactions or phone records to track a taxpayer’s location, and sending auditors to interview doormen or confirm doctors’ appointments,” the report concluded.
Barry Horowitz, a partner at the WithumSmith+Brown accounting firm, said in March that wealthy residents planning on leaving New York should expect to be audited.
“If you’re a high earner in New York and you move to Florida, your chances of a residency audit are 100 percent,” he said. “New York has always been aggressive. But it’s getting worse.”
Warren Warns of Impending Economic Crisis: ‘Warning Lights Are Flashing’
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Another economic crisis is imminent and “warning lights are flashing,” according to presidential candidate and Massachusetts Sen. Elizabeth Warren (D-MA), who offered a plan Monday to address the alleged economic threat.
Warren voiced her concerns on the “serious warning signs in the economy” in a Medium post titled “The Coming Economic Crash — And How to Stop It.”
She described herself as ahead of the curve on the economic crisis of 2008, but said the “people with the power to stop the crisis ” did not listen. This, she implied, could be happening again.
She wrote:
When I look at the economy today, I see a lot to worry about again. I see a manufacturing sector in recession. I see a precarious economy that is built on debt — both household debt and corporate debt — and that is vulnerable to shocks. And I see a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.
Warren listed a few ideas designed to address what she considers this looming economic crisis, many of which she has articulated before. She said it is crucial to reduce household debt and plans to do so, in part, by raising the minimum wage to $15 an hour– a move which the Congressional Budget Office found could result in up to 3.7 million workers losing their jobs, although the CBO’s median estimate is 1.3 million.
“The CBO also found that the hike would raise consumer prices and slightly shrink the country’s economic output by reducing capital investment,” Breitbart News reported.
Warren would also erase the majority of student debt and offer “free” college and “free” universal childcare. Her sweeping debt cancellation plan alone would cost the U.S. roughly $640 billion, putting another significant strain on taxpayer wallets.
The presidential candidate also teased her Green Manufacturing Plan, which will “mobilize our industrial base by making a $2 trillion investment in American green research, manufacturing, and exporting over the next decade.” She believes her Green Manufacturing plan will create over a million “high quality” jobs, which will ultimately help address what she described as the “existential threat of climate change.”
“Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high — and growing,” Warren warned. “Congress and regulators should act immediately to tamp down these threats before it’s too late.”
The U.S. economy has thrived under the Trump administration, and it remains one of the president’s strong points. During an exclusive Oval Office interview with Breitbart News in March, Trump named the economy as his biggest accomplishment, largely attributing it to his success of deregulating.
As Breitbart News reported:
“Maybe the economy,” Trump replied when Breitbart News Washington Political Editor Matthew Boyle asked him what his biggest accomplishment was in his view. “Look at jobs. Best jobs record in 60 years. Best individual records for Asians, for African-Americans, for Hispanics ever. I think the economy—but I think a lot of things. Regulations—I think regulations led to the economy, the tax cuts. Even in the tax cuts we got ANWR. Nobody for 50 years could get it and I got it approved—you know, the biggest drilling site. So we’ve done a good job—so in theory it’s easier because I can say, ‘look what I’ve done’ as opposed to the first time where I said, ‘I can do this.’”
The unemployment rate is currently sitting at 3.7 percent– a slight increase from 3.6 percent. However, the slight uptick is not necessarily a bad thing.
“At 3.7 percent, the unemployment rate is close to multi-decade lows. And the reason the rate rose slightly is that the number of Americans looking for work picked up,” Breitbart News reported.
The U.S. economy grew 3.2 percent in the first quarter of 2019, smashing expectations and prompting critics to unload on Obama, who openly mocked Trump’s vision for economic prosperity in the past.
“What magic wand do you have?” Obama asked during a 2016 PBS town hall.
“Well Abracadabra buddy… I guess there is a magic wand for that!!!” Donald Trump Jr. exclaimed in a tweet last month.
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