Why are people leaving New York in droves? From March through July alone, there were 244,895 change of address requests. In an interview on the Follow the Profit Podcast, Dan Pipitone – New Yorker and co-founder of TradeZero America – says that he doesn’t blame New Yorkers in exodus. Between the slow build of taxes and the last year’s circumstances, they’re making homes elsewhere. Where are they going and why?
Why are people leaving?
The number one reason the city’s top earners leave or consider leaving is the cost of living. A lot of New York residents are leaving because of sky-high taxes between city, state and federal. Add on property taxes, and some people say it’s the last straw. And they don’t foresee any improvement in the near future. Before the pandemic, many tech and finance people had to live in the city that never sleeps because it held all of the action. With the pandemic and a mass movement to remote work, they realized they could live in a city with a lower cost of living while keeping their job. Take-home pay is considerably more when you’re based in a state without a state income tax, such as Florida.
What’s the draw to Florida and Texas?
If New Yorkers are leaving the concrete jungle because of taxes, they would be remiss to live in a state with a state income tax. States that don’t have income tax include Alaska, Florida, Nevada, New Hampshire, Tennessee, Texas, Washington and Wyoming. Another big reason people are moving to Florida and Texas is that they’re opening up faster than the rest of the country. Their governments leave many decisions up to the individual: wearing masks, opening their business, going to the gym, eating indoors and more. If you could have more individual freedom, more money and a warmer climate, wouldn’t you move, too?
What will happen to NYC?
Bloomberg’s report found that the top 1% of New Yorkers paid $4.9 billion in income taxes in 2018. With the Wall Street “glitterati” taking their money elsewhere, what will happen to the Big Apple?