The Empire State has lost 10 billionaires in the past four years, and those moves have hurt New York‘s bottom line for tax revenue.
The Forbes 400 list, which compiles the richest Americans by net worth, shows only 62 New Yorkers in its list of billionaires, compared to 72 in the 2019 rankings. Of those 10 ex-New Yorkers, the New York Post reports three of them moved to the Sunshine State.
Florida has become an appealing destination for New Yorkers, rich and ordinary, for various reasons, but the lack of a state income tax is certainly appealing to wealthier individuals.
“You have this incredibly high rate imposed on all of the income of the highest earners [in New York], and living just about anywhere else will substantially reduce your tax burden,” Jared Walczak, vice president of the National Tax Foundation, told the New York Post. “Going to Florida will obviously eliminate your individual tax burden, and many of these billionaires clearly have that flexibility.”
Walczak told the outlet that the Empire State relies on its top 1% of taxpayers to cover 42% of the state’s tax receipts. With New York’s highest income tax rate amounting to 14.8%, the 0% personal income tax rate in Florida is significantly more appealing to many wealthy individuals.
Data from the United States Census Bureau released earlier this year showed 91,758 movers went from New York to Florida in 2021. The increased migration from the Empire State to the Sunshine State has been a bragging point for Gov. Ron DeSantis (R-FL), who has claimed it is an endorsement of his leadership and an indictment of leadership in New York.
