It’s official. The governor of New York confirms it. The tax exodus has begun.
We've been expecting this.
In New York, a $2.3 billion shortfall in state revenues. Gov. Cuomo blames the new tax law. You can only deduct $10,000 worth of state and local taxes. In high-tax states, that’s a pittance. Result: Even middle-class people end up paying more tax, and the one-percenters are getting socked. Some of them are moving, and taking their money with them.
The Wall Street Journal is also confirming the tax exodus. The tax refugees are heading to low-tax Florida, which received more American migrants than any other state! “I’m starting to see New Yorkers as Florida’s new foreign buyers," says a real estate appraiser in Miami. “The tax law has changed the calculus," he says.
More confirmation from the New Jersey Department of the Treasury. In December its income tax revenue dropped 35 percent from last year. It blames the tax law.
And don't forget research from Wealth-X that suggested 5,700 millionaires had moved out of New York City and New Jersey in the last year!
Actually, the fault here is not the new tax law. It’s the extremely high state taxes and property taxes in New Jersey, New York, Illinois and California, all of which have been run by Democrats. As we've said so many times, one-percenters in these states didn't get a tax cut. Most of them got a tax increase, and it’s being felt right now.
The tax exodus is just getting started. It’s going to become a flood.