Affluent New Yorkers Ditching NYC’s High Taxes for Miami

By Hadassa Kalatizadeh

One state’s loss is another state’s gain. Disgruntled New York residents are eyeing Miami for more than just a vacation. The high costs of living in the Big Apple and the sky high taxes are driving out residents. As reported by the NY Post, the fleeing masses have a common destination—Florida’s Miami-Dade County.

Miami is becoming known as an economic paradise. A study posted by the Unhappy New Yorkers website computes a potential savings of roughly $25,000 annually for those making $100,000 for living in Dade County compared to New York City, thanks to the lower taxes and lower cost of living. The same calculation would bring an estimated $235,000 in annual cost savings for an income of $1 million, after making the move. The disparity between the different state taxes was intensified in 2017 with the updated federal Tax Cuts and Jobs Act, which gave New York, New Jersey and Connecticut residents the short end of the stick. A cap was placed on deductions for state and local taxes which works against higher earners as well as those already paying high property taxes.

In June, a study conducted by the Rockefeller Institute of Government, moreover, found that residents of New York pay more money in federal taxes but get back less in federal programs and funding. “Forty states have a positive balance of payments, meaning that they receive more from Washington than they contribute in taxes, but New York is on the extreme other end,” confirmed New York State Budget Director Robert Mujica.

“The results are stark. The state’s massive negative balance of payments for 2017 was -$35.6 billion, which ranks it the worst in the nation,” the report said. “In fact, New York’s gap in 2017 is almost as large as that of the next two states — New Jersey ($21.3 billion) and Massachusetts ($16.1 billion) — combined. This worst-in-the-nation rank remains the same as it was in 2016,” the report continued.

“The governor has been upset about this and has been fighting it for years,” said a spokesman for Gov. Andrew Cuomo.

So it’s not surprising that people are fleeing the Empire State for sunnier pastures. Florida had the highest number of migrants from other states. Most of those migrants came from New York. During the 12 months period ending in July 2018, 63,722 people moved to the Sunshine State from NY, as per data from the US Census Bureau.

Miami-Dade in particular has become a haven for frustrated New Yorkers. “I have never seen such demand like this from New York before,” said Armando Codina, executive chairman of Codina Partners, developer of Downtown Doral. He says New York’s tax modifications have been as encouraging for business there, as Venezuela’s socialist government, which led thousands of Venezuelans into Florida. Codina approximates that roughly 25 percent of the 60,000 residential apartments for sale in his neighborhood will be purchased by New Yorkers, adding another 5,000 former New Yorkers to the area.

“Here’s the reason why people are coming: Lower taxes, weather is better — it is a lot better down there,” said Sen. Rick Scott, the former Florida governor, earlier in the year.