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The $1 Trillion Capital Flight From California and New York

We’ve been reporting the accelerating trend of financial services companies abandoning New York and California for new homes in Texas, Tennessee, and Florida – all states without a state income tax.

Elliott Management pulled up stakes for West Palm Beach. AllianceBernstein moved to Nashville. Charles Schwab moved to Dallas.

But we’ve had only anecdotal evidence of how big the impact has been. Until now. Bloomberg News has examined 17,000 corporate filings since late 2019 and concluded that California and New York have lost firms that managed close to $1 trillion of assets. They also took with them thousands of high-paying jobs and left many high-end office buildings empty.

Taxes are a major factor in these relocations. Fisher Investment, which manages $211 billion in assets, abandoned green Washington state for suburban Dallas when that state’s Supreme Court recently outrageously declared the state could impose an income tax – a clear violation of the state’s Constitution.

When will the Blue State pols learn they are committing economic Suicide with their current policies? Instead of cutting their income taxes – which exceed 13% in California and New York – they are seeking a new federal tax break to offset their high state-local tax burdens.

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