What Happens When the 1% Go Remote

[Klaralven]

It doesn’t take very many ultra-wealthy Americans changing their address to wreak havoc on cities’ finances.

The 1% are on the move. Tom Brady and Gisele Bündchen bought a $17 million teardown on Miami Beach’s ultra-exclusive Indian Creek island. Jared Kushner and Ivanka Trump, who are said to have plunked down $30 million for a lot, may be their neighbors. Recently it emerged that hedge fund Elliott Management Corp. is moving its Manhattan headquarters to South Florida, and that private equity giant Blackstone Group Inc. will open an office there. Goldman Sachs Group Inc. is reportedly considering relocating part of its asset management operations to the region, too. It’s not just happening on the East Coast. In the last few months, the venture capitalists David Blumberg and Keith Rabois decamped from the San Francisco Bay Area to Miami. All of this prompted Silicon

Austin is having something of a moment as well. Elon Musk is trading Los Angeles for the Texas tech hub, where his new $1 billion Cybertruck factory is under construction. Larry Ellison announced that Oracle would move its headquarters there from Silicon Valley. DropBox Inc. CEO Drew Houston and Splunk Inc. CEO Douglas Merritt reportedly took steps to relocate from the Bay Area to Austin, too.

Some residents of pricey cities like New York, L.A. and San Francisco might say good riddance to the uber-rich whom they blame for growing unaffordability and inequality in their cities. But their cities will pay a literal price for their departures. It doesn’t take very many one-percenters changing their address to wreak havoc on cities’ finances.

When the billionaire hedge funder David Tepper left New Jersey for Miami Beach in 2015, he left a a crater in New Jersey’s budget that experts estimate was upwards of $100 million annually. (Interestingly enough, Tepper recently moved back home to the Garden State.) A whopping 80% of New York City’s income tax revenue, according to one estimate, comes from the 17% of its residents who earn more than $100,000 per year. If just 5% of those folks decided to move away, it would cost the city almost one billion ($933 million) in lost tax revenue.

https://www.bloomberg.com/news/articles/2020-12-16/what-happens-when-the-1-move-to-miami-and-austin

[mahatmakanejeeves]

1. 80% of New York City's income tax revenue comes from the 17% of its residents who earn over $100k.

Interesting.

[Hermit-The-Prog]

11. Yeah, that was a pretty jarring leap from talking about 1 percenters to "over $100k"

How much of NYC's income tax revenue comes from those 1%ers the article started with?

[MontanaMama]

2. Rick Wilson of the Lincoln Project

thinks that Ivanka will run for some office in FL since the Kushner’s are shunned in NYC. Rick wonders if she will primary Li’l Marco. The tRump’s have figured out that politics is the ultimate grift for them. I doubt they will go quietly.

[napi21]

3. GOOD! They can all join hands as Florida disappears into the Ocean. Bye bye! n/t

[belpejic]

5. Yep. Enjoy it while it's above water. Prices should be more affordable when you move back north.

You'll have wasted a lot of time and money on moving expenses and lost productivity, though.

[jimfields33]

6. Of course those left will have to make up lost revenue.

[OAITW r.2.0]

4. There's always Mogadishu.....

low taxes and small government utopia.

[brooklynite]

7. Plenty of pricey Co-ops in Manhattan are still occupied...

[intrepidity]

8. Eh. They're a bunch of tax cheats anyway

Good riddance. We'll survive just fine.

[StClone]

9. Point is this wealth should never have been allowed to accumulated in so few hands

If spread among thousands of people there wouldn't be a problem.

[FakeNoose]

10. The joke's on them. South Florida will be underwater in a few years

What will it matter how much their property is worth, if it's all underwater?