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Major New York companies that resisted the pandemic are now considering packing up more than $ 7 billion in new proposed state taxes.
At least 20 financial and technology companies are already about to leave for sunny Florida with low taxes, said Kathyrn Wylde, CEO of Partnership for New York City. “Legislative proposals will move us in the opposite direction, away from business and the tax base needed to do that,” said New York City Council President James Whelan, a powerful chairman.
If the Democratic-controlled state legislature approves its proposed $ 208 billion tax and spending plan, “New York State will be the most taxed state in the country,” lamented Wylde.
Major New York companies that resisted the pandemic are now considering packing up more than $ 7 billion in new proposed state taxes. (iStock)
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Technology jobs – so easily switched to “remote” in 2020 – are particularly vulnerable to relocation. “Technology is our most important job creator in New York now, and they are already making decisions about not staying in New York,” said Wylde, refusing to name names.
The Poles in Albany appear to be intent on “punishing the rich,” said Wylde.
And the new cold tax climate may also mean that high-income New Yorkers who have temporarily fled the city for places like Palm Beach may not return. “We cannot take it for granted that millionaires and billionaires will return to New York,” said Wylde.
Big names on Wall Street have already threatened to pack up if Albany promulgates a stock transfer tax, 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 bond, under the measure.
“While New York remains a center of gravity for the financial sector, many employees of ‘Wall Street’ companies are migrating to Florida, Texas and other states with hospitable tax policies,” said Stacey Cunningham, president of the New Stock Exchange York, wrote last month in an opinion piece in the Wall Street Journal.
“The New York Stock Exchange belongs to New York. If Albany’s lawmakers get what they want, however, the center of the global financial industry may need to find a new home, ”she warned.
Big names on Wall Street have already threatened to pack up if Albany promulgates a stock transfer tax, 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 Virtu Financial, a Manhattan-based high-frequency trader, Douglas Cifu, called the stock transfer tax “silly.”
“We have an office in Florida and we would simply leave New York State,” he said during a February earnings conference call. “We would never pay anyone in the state of New York [stock-transfer] tax. “
Cifu added that the Texas legislature is considering a ban on “any type of transaction tax”.
Goldman Sachs is considering moving its asset management business to Florida, opening the scope of offices in Palm Beach and Fort Lauderdale, according to reports. A Goldman representative told The Post Friday: “We are implementing the strategy of finding more jobs in high-value locations across the United States, but we have no specific plans to advertise at this time.”
Goldman Sachs is considering moving its asset management business to Florida, opening the scope of offices in Palm Beach and Fort Lauderdale, according to reports. (AP Photo / Richard Drew, Archives) (AP)
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State Senator Alexis Weik, a Republican from Long Island, said: “Instead of focusing on keeping New Yorkers in New York, these irresponsible tax and spending policies will continue to evict our residents from the state.”
The exodus may not be limited to companies with few assets, whose workers carry out their operations with laptops. New York’s hometown airline, JetBlue, said in a March 11 memo to employees obtained by The Post that it was “exploring” the transfer “of a number to be determined from functions to existing support centers in Florida” .
REBNY’s Whelan offered a doomsday forecast if tax increases continue: “We’ve come this way before. In the 1960s and 1970s, these policies discouraged investment in New York City and led to a reduced tax base and less resources for the provision of government services. The results were devastating – two decades of fiscal problems, coupled with increased crime and unacceptable quality of life. “