Top pandemic companies in New York that have survived the pandemic are now considering packing more than $ 7 billion in proposed new state taxes.
At least 20 finance and technology companies are already ready to leave for sunny Florida with low taxes, said Kathyrn Wylde, CEO of the New York Partnership, backed by business.
“The Legislature’s proposals will move us in the opposite direction, driving away the business and tax base needed to do so,” said James Whelan, the powerful chairman of the New York Real Estate Council.
If the Democrat-controlled state legislature adopts its $ 208 billion tax and spending plan, “New York State will be the most taxed in the country,” Wylde lamented.
Jobs in technology – so easily switched to “remote” in 2020 – are particularly vulnerable to relocation. “Technology is the most important job creator in New York right now and they are already making decisions about not staying in New York,” Wylde said, refusing to name names.
Albany police appear to be intent on “punishing the rich,” Wylde said.
And the cold new fiscal climate could also mean that high-income New Yorkers who have temporarily fled the city to places like Palm Beach may not return. “We can’t take it for granted that millionaires and billionaires will return to New York.” Wylde said.
Big names on Wall Street have already threatened to pack up if Albany promotes a share transfer fee, which is proposed in an active bill. The State would claim a percentage of the proceeds from each purchase or sale of shares or other guarantees under the measure.
“While New York has remained a center of gravity for the financial industry, many Wall Street employees are migrating to Florida, Texas and other countries with hospitable fiscal policies,” said Stacey Cunningham, president of the Stock Exchange. New York, wrote last month in a Wall Street Journal op-ed.
“The New York Stock Exchange belongs to New York. However, if Albany lawmakers make their way, the center of the global financial industry may need to find a new home, ”she warned.
A Nasdaq spokesman did not send a message about his plans.
The CEO of Manhattan’s high-frequency trader Virtu Financial, Douglas Cifu, called the transfer tax “stupid.”
“We have an office in Florida and we’re leaving New York,” he said during a February call. “I would never pay any state in New York [stock-transfer] tax.”
Cifu added that the Texas legislature is considering banning “any type of transaction tax.”
Goldman Sachs is considering moving its asset management business to Florida, setting up offices in Palm Beach and Fort Lauderdale, according to reports. A Goldman spokesman told The Post Friday: “We are implementing the strategy of locating more jobs in high-value locations across the United States, but we have no specific plans to announce at this time.”
State Sen. Alexis Weik, a Long Island Republican, said, “Instead of focusing on keeping New Yorkers in New York, these irresponsible tax and spending policies will continue to drive residents out of the state.”
The exodus may not be limited to light-hearted companies whose workers transact with their laptops.
The New York-based airline JetBlue said in a March 11 note to employees of The Post that it was “exploring” the relocation of “a certain number of roles to existing support centers in Florida.”
Whelan, from REBNY, provided a prediction of the day of the trial if the tax increases go through:
“I have been on this road before. In the 1960s and 1970s, such policies eventually discouraged investment in New York and led to a diminished tax base and fewer resources to provide government services. The results have been devastating – two decades of tax problems, along with rising crime and the unacceptable quality of life. ”