New York loses $1 trillion in Wall Street business as firms flee the city

https://nypost.com/2023/08/21/new-y...in-wall-street-business-as-firms-flee-report/

Anyone wanting to minimize this is part of the problem and deluding you. Anyone wanting to pull up the last 25-40 years of data and ignore the fact that this is since 2019 is just lying. This is a real and recent thing. This adds up. These blue cities are in death spirals and they are doubling down rather than correcting.

To say this is "working" to say this is what people want and desire when the word used is FLEEING is really quite a reach. It's literally gaslighting if you are claiming that this is what people really want at this stage.

These are powerful and often wealthy people and if local events could be changed through support of certain candidates or causes, they could and likely have attempted it. Whether through election fraud or manipulation, these wealthy companies and individuals are fleeing blue cities much like how people fled the Eastern Bloc countries or Cuba.

Smart people will follow them to freedom. Who's next?

 

The most ironic part of whats taking place today in democrat cities is they are now calling for the same thing they railroaded and blocked Trump from doing regarding immigration and now are turning their anger on Biden.

For the Biden admin, it's one failure after another. Polling continues to shrink. The admin has nothing positive to run on, so its just attack after attack and people are getting tired of the pot calling the kettle black, hence his terrible polling numbers and why Trump is even with him or ahead in numerous polls....even with multiple looking court cases. Speaks VOLUMES.

 

How are corporate assets a loss to a city?

And Floridians are not amused with such people creating a housing bubble. Thanks to them (and DeSantis), Florida inflation is still 9% and Miami the least affordable city in the nation.
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Did you read the article?

"Taking thousands of high-paid employees with them, the data shows."

"Likewise, the exodus has grave tax implications for the city and state. Last year, financial firms paid $5.4 billion in New York taxes and accounted for nearly a quarter of all personal income tax collections, according to the report."

 

Remote work is the new norm, especially with NYC. All one has to do is read the help wanted, and remote work is one of their recruitment efforts. By allowing the remote work, the employer is not obligated to hike the salary due to the commute, let alone office space.

I still get emails from recruiters nearly every day.

 

I don't get them anymore. Now its all hybrid, like Mon & Fri work from home, and Tue, Wed, Thu on site, which means you have to live near the office.

 

According to Bloomberg, the exodus of financial firms from California has cost that state $1 trillion, too.

 

Corporate assets are not assets of the State, except in a communist country, so its weird they'd make is sound like the State "lost" the money.

 

If you read the article, it explains the tax loss.

 

Corporations are not taxed based on their assets, unless they sell them for profit. On the contrary, they can deduct taxes based on asset depreciation. So, to say a State "loses" a trillion dollars because corporations had that much in assets is meaningless. Furthermore, in this case these companies were asset managers, which means the assets were not even their own assets, but assets of their clients. So the only thing the State would lose is the corporate tax they company paid to the State, but vast majority of corporate tax is paid to the federal government. not the State

 

When these firms are managing these assets within their respective states, they pay capital gains and other taxes.

That's from the article...just read.

 

Since they manage other peoples money, like 401Ks, the owners of the assets (the 401K investors) pay capital gains.....to the federal government. The profits the companies make for managing the money is also paid to the federal government.

They do pay some to the State, 5.5% in FL, and I think 7% in NYC.

My point here is that the article makes it sound like the State "lost" the money which they count in assets, which means nothing, because the State never owned those assets. They did not lose the assets, they lost whatever the corporation paid to the State in State corporate tax.

All financial firms, - those which remained in NYC and those which left (not many), and even all of them put together the $5.4B is a heck of a lot less than that the headline would want you to believe.

But then again, NYPOST has a reputation of this kind of spin

 

Yeah I should have been more direct, I meant hybrid too, with some exceptions.

 

Again. If you read the article. Employees are assets. Employees are taxed. Employees pay taxes.

 

Move assets to a state which does not have so many regulations, cheaper living standards and less crime.

Even with 9% inflation, Miami is much cheaper to live in and even cheaper to conduct business from. Besides, one can live in a house instead of an apartment in Miami for the same or less cost.

Maybe, you would be happier moving to New York.

 

Again, those assets are property of their investors like 401K savers, so there were never property of NY, so NY didnt lose any assets.

If you say so. Its officially the least affordable place to live or rent commercial real estate. If you make NYC salaries, then Miami is more affordable, but an average person there spends 80% of their income on housing which is why Miami population is declining, not increasing as you seem to think.

If you don't mind the long commute, yes, but lot of people live in condos in Miami so they dont have to commute.

Childish attempt to make it about me.

 

Least affordable because Republicans made new laws? Or simply lots of rich people buying up real estate in a desirable area, inflating costs? Please. Don’t try to BS people here. Thanks.

 

Hey, I thought Trumpers were against the "rich men north of Richmond"? Why do they all of a sudden cheer for them? Are rich men in Florida less reprehensible?

 

You'd think people would know this. However, they just read $1 trillion lost in NY, and mindlessly cheer for their RW propaganda.

 

So explain how New York isn't losing the tax dollars as the article claims? Is the NYPOST lying?

"Likewise, the exodus has grave tax implications for the city and state. Last year, financial firms paid $5.4 billion in New York taxes and accounted for nearly a quarter of all personal income tax collections, according to the report."

So New York will still get those tax dollars from companies and employees working in Florida?

 

I wonder if the tax loss will cause New York to have to cut back on Democrats' spending excess, and actually address the problems of crime and corruption. Probably not.

Investors will probably scoop up every available space and hike the price. They won't be able to afford to come back. Leaving NY is a one way trip.

 

Wouldn't it be a shock if these Republican districts actually lose out on tax income from attracting these tenants as they deduct out their taxes and don't get taxed like that.

 

I dont think the difference is as big as people want to believe

NYC always comes back. Its the worlds economic capital, and that is not about the change just because some companies opened offices elsewhere. The city had been through far worse than this, like the 1970s when the mafia controlled the city and every cop was corrupt. Today, Florida alone has 5 cities with worse crime rates than NYC. The real estate prices are already coming down, and as you say, investors will snap them up.

 

The funny part is New York is telling these people, "Good riddance".

 

"financial firms paid $5.4 billion in New York taxes" That's the total for ALL financial firms, not the ones that left.

"The Nashville move was driven by hard numbers that show the massive savings that can come with an exit from New York: According to Statista, companies spend a median of $94 per square foot for corporate space in Manhattan, while offices in Nashville run for a median of $31 per square foot." So, rent is the issue, not taxes. The free market at its best.

"Nearly 160 Wall Street firms have moved their headquarters out of New York since the end of 2019, taking nearly $1 trillion — yes, that’s trillion with a “T” — in assets under management with them, according to data from 17,000 companies compiled by Bloomberg." Those assets could be from investors all over the place in the US. They do not generate tax income, at least not for NY City.

Overall, this is a misleading article, designed to get an emotional reaction from the Trumper NY Post readership. And it did.