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Wed Dec 16, 2020, 07:37 PM

What Happens When the 1% Go Remote

It doesnít take very many ultra-wealthy Americans changing their address to wreak havoc on citiesí finances.

The 1% are on the move. Tom Brady and Gisele BŁndchen bought a $17 million teardown on Miami Beachís 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. Itís 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 doesnít take very many one-percenters changing their address to wreak havoc on citiesí finances.

When the billionaire hedge funder David Tepper left New Jersey for Miami Beach in 2015, he left a a crater in New Jerseyís 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 Cityís 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

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 07:42 PM

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

Interesting.

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Response to mahatmakanejeeves (Reply #1)

Thu Dec 17, 2020, 02:20 AM

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?

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 07:43 PM

2. Rick Wilson of the Lincoln Project

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

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 07:45 PM

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

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Response to napi21 (Reply #3)

Wed Dec 16, 2020, 08:04 PM

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.

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Response to napi21 (Reply #3)

Wed Dec 16, 2020, 08:13 PM

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

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 07:55 PM

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

low taxes and small government utopia.

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 08:20 PM

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

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 08:23 PM

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

Good riddance. We'll survive just fine.

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 09:41 PM

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.

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Response to Klaralven (Original post)

Wed Dec 16, 2020, 09:43 PM

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?


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