(TheRedWire.com) – In the last few years, the mass exodus of tech companies and Wall Street Banks from New York and California has led to losses of close to $1 trillion apiece in assets, according to Bloomberg News analysis.
The two states have suffered from the exit of Charles Schwab, Elliott Management, and AllianceBernstein, as the companies used to provide thousands of high-paying jobs in the two states. The two states have now had to deal with the loss in tax revenue and the drop in the commercial property market caused by the exodus of the finance industry.
Many properties have also been left vacant, unable to find new tenants as there has been an increase in those working remotely.
In their analysis, Bloomberg looked at more than 17,000 firms since 2019 to find that their move out of New York City, San Francisco, and Los Angeles was usually the result of a wish to go somewhere with lower taxes and better weather.
According to Bloomberg, from early 2020 till the end of March 2023, over 370 investment companies had relocated to a new state. Those companies were collectively managing $2.7 trillion in assets. Most of the migration has occurred from high-tax states in the lower-tax states of Texas and Florida. Both of these states have no income tax.
Florida, in particular, drew in many of the companies that left New York, as both AKR Investment Management and Icahn Capital Management moved to the state. Companies leaving California were shown to be more likely to relocate to Texas. However, businesses were only one of the ones to migrate as a growing number of Americans also relocated to those two states.
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