Wealthier New Yorkers Aren’t Fleeing the City for Tax Havens

A new analysis being released undermine the frequent assertion that wealthy people automatically leave New York City because of the high income taxes, despite the recent increase in celebrities leaving certain states and countries for this reason. Mayor de Blasio campaigned to raise taxes on those who make more than $500,000.
The study, conducted by the city’s Independent Budget Office, found that the share of higher-income households that moved from the city in 2012, 1.8%, equaled the share of lower-income households that left. Moreover, the budget office determined that 42 percent of households that made more than $500,000 and left the city in 2012 moved elsewhere in New York State. Another 22 percent departed for New Jersey. The third favorite destination among the wealthy, with 12 percent, was Connecticut, where the Tax Foundation, a nonpartisan research group, estimated that taxpayers typically did not earn enough until May 9, the latest of any state, to pay their total tax bill.
In fourth place was California, where 9% of the wealthy households went.
In summary, 86% of households making over $500,000 moved from NYC to four states with reputations for higher taxes. Only 45% of the less wealthy households relocated to those states.
States known for lower taxes, among them, South Dakota, Delaware, New Mexico, Utah, Tennessee, Louisiana, Colorado, Alabama and Wyoming, did not even register on the study’s list of destinations for wealthier New York City movers.
“The implication is pretty clear that at least based on 2012, and it’s not much different for 2008, high-end New Yorkers are not making their relocation decisions simply looking for tax havens,” said Doug Turetsky, the budget office’s chief of staff.

Dear Friends and Clients,

Our firm is dedicated to act with compassion, concern and commitment to our clients, community and colleagues. As such, we have been taking precautions to ensure that we are still fulfilling our ethical and moral obligation to our clients, while also ensuring the health and safety of our employees.

Until further notice, our offices will be closed to the public to encourage social distancing and to help prevent the spread of COVID-19. Our team is still hard at work, most from home, and you may still call, email, live chat or video conference us if you or a loved one is seeking legal assistance. As the first law firm to offer our clients secure online access to their case file more than a decade ago, we have always been believers in using technology to make life easier and information more accessible. In these present times it has been a smooth transition for us to continue to offer our clients the same seamless and thorough service that you deserve and are accustomed to.

This pandemic is unlike anything any of us have faced in our lifetimes, and while we can continue to emotionally support one another through it all, staying home and keeping your distance is vital to the health and wellness of our communities. It does not feel good to break routines, cancel events and retreat from our normal, day-to-day socializing, but let us remember that, in times of strife, prior generations were asked to go to war and we are simply being asked to stay home. Your isolation equals more lives saved, and more time for medical providers to prepare for the treatment of patients battling COVID-19.

When the dust settles, we will join together with a greater appreciation for the country we live in, local businesses, loved ones and health. Until then, we will continue to offer guidance and representation from a safe distance.

Very truly yours,

Marvin Anderman and the firm family of Fine, Olin & Anderman, LLP