If you answered Palm Beach County in Florida, you’re right. When tax reform capped state and local tax deduction from federal returns, financial firms and their employees were exposed to the naked truth about the high state taxation in the Northeast. With governments in New York, Massachusetts, and Connecticut drowning in obligations, taxes aren’t coming down soon.
That’s why so many financial firms and employees are voting with their feet and heading for low tax Florida instead. Many wealthy retirees have already made this sound financial choice, and it’s no surprise to see profit-making businesses do the same. Fox Business’s Brittany De Lea reports on the exodus of firms to Florida, writing:
Forget Wall Street, financial firms are seeking warmer weather – and lower taxes– in Florida.
Hedge funds, private equity firms and wealth management offices are leaving the northeast and heading to Palm Beach County, Florida.
Kelly Smallridge, president and CEO of Palm Beach County’s Business Development Board, told FOX Business that more than 70 financial services companies have moved into Palm Beach County within the last three years. Currently, the organization is working with another 15.
“I cannot keep up with the number of companies coming in,” Smallridge said. “Some are headquarters, some of them are regional operations. Many of them, once they get here, within short order establish [Palm Beach] as their home base.”
Firms are primarily coming from three main areas – New York, Boston and Connecticut (specifically Greenwich). All of these locations were impacted by the $10,000 cap on state and local tax deductions.
Some notable names that have moved into the Palm Beach area include Paul Tudor Jones and Wexford Capital.
Because of a surge in corporate relocation interest, the Palm Beach Development Board has created a full-time department dedicated to the cause.
It doesn’t hurt that the county has a high concentration of wealth, either. There are 40 billionaire and 71,000 millionaire households, according to Smallridge. Residents also have access to three international airports and a high-speed rail, which can bring travelers straight to Miami.
If you are a retiree looking for relocation, I encourage you to examine your choices thoroughly. Read more here about choosing where to live in retirement.
E.J. Smith - Your Survival Guy
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