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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhat Happens When the 1% Go Remote
It doesnt 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 Beachs 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. Its 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 doesnt 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 Jerseys 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 Citys 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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What Happens When the 1% Go Remote (Original Post)
Klaralven
Dec 2020
OP
80% of New York City's income tax revenue comes from the 17% of its residents who earn over $100k.
mahatmakanejeeves
Dec 2020
#1
Yeah, that was a pretty jarring leap from talking about 1 percenters to "over $100k"
Hermit-The-Prog
Dec 2020
#11
Yep. Enjoy it while it's above water. Prices should be more affordable when you move back north.
belpejic
Dec 2020
#5
mahatmakanejeeves
(60,422 posts)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
(36,304 posts)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
(23,950 posts)2. Rick Wilson of the Lincoln Project
thinks that Ivanka will run for some office in FL since the Kushners are shunned in NYC. Rick wonders if she will primary Lil Marco. The tRumps have figured out that politics is the ultimate grift for them. I doubt they will go quietly.
napi21
(45,806 posts)3. GOOD! They can all join hands as Florida disappears into the Ocean. Bye bye! n/t
belpejic
(728 posts)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
(18,375 posts)6. Of course those left will have to make up lost revenue.
OAITW r.2.0
(27,948 posts)4. There's always Mogadishu.....
low taxes and small government utopia.
brooklynite
(96,882 posts)7. Plenty of pricey Co-ops in Manhattan are still occupied...
intrepidity
(7,797 posts)8. Eh. They're a bunch of tax cheats anyway
Good riddance. We'll survive just fine.
StClone
(11,869 posts)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
(35,227 posts)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?