Could the Republican tax plan drive wealthy residents out of the Northeast?

Earners making $1M in region could owe IRS extra $21K under proposed GOP plan

TRD New York /
Nov.November 27, 2017 10:10 AM

The proposed GOP tax plan could make wealthy Northeasterners consider a move from Manhattan or Greenwich to the sandy beaches of Florida, a few experts believe.

The Republican proposals in the House and Senate would eliminate deductions for the majority of state and local taxes, meaning people with an annual salary of $1 million could end up owing the IRS an extra $21,000, according to Bloomberg.

The plan would impact salary earners much more than investors, with a person making $1 million from investments saving roughly $7,000.

The possible change has fueled talk of moving among wealthier residents of the Northeast, where individual tax rates rank among the highest in the country. Florida has emerged as a prime possible destination for them thanks to its lack of a state income tax.

However, David Silver, a senior manager at the accounting firm MBAF, told Bloomberg he thinks talk of moving is mostly hot air.

“I would argue it’s probably not all that likely to uproot your family, leave your friends, and put your kids in new schools just because of proposed tax changes,” he said.

The GOP tax plan has proven popular so far with the commercial real estate industry, but it is significantly less popular on the residential side, as it could increase the cost of homeownership[Bloomberg]Eddie Small


Related Articles

arrow_forward_ios
Nuveen CEO Vijay Advani, Blackstone President & COO Jonathan Gray and one of the Texas properties

Blackstone just sold off a 29M sf national industrial portfolio

The purge continues: WeWork’s head of real estate is leaving

Judith and Rudy Giuliani Rudolph and Judith Giuliani are divorcing after 16 years. (Credit: Getty Images, Trulia, Highrises)

Luxury properties at play in Rudy Giuliani’s ugly divorce

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

Senator Brad Hoylman and Billionaires' Row (Credit: StreetEasy, NY Senate)

Pied-à-terre tax to make a return in Albany, lawmakers say

Jimmy Van Bramer (Credit: NYC.gov, iStock)

After failing to meet his own deadline, Queens council member returns thousands in real estate donations

General contractors are suffering under Trump’s new tariffs on Chinese goods

From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

arrow_forward_ios