New York and Connecticut are losing significant hedge funds and other investment firms to Miami
Miami, already called Wall Street South, is the second most popular banking hub in the United States just behind New York. The city is desired by many, not only because of its beauty and lifestyle, but also a favorable tax climate for high net word individuals – which have always enticed wealth from all around the world.
Florida doesn’t charge income tax, and the state’s per-capita tax rate is one of lowest in the nation. To take advantage of that, now even more banks, private-equity firms, and hedge funds are migrating to the city, said recently released article by the Bloomberg. David Tepper, Paul Tudor Jones, and Eddie Lampert are just a few examples of hedge funds that moved to Miami in the past few years.
It’s possible that the drive will increase, especially after the Internal Revenue Service (IRS) signed its likability to restrain the efforts from New York, New Jersey, and Connecticut, high-tax states, to use charitable donations to dodge the $10,000 cap.
In total, Miami is the home to more than 60 international banks and 100 alternative investment companies, out of their traditional cities, such as New York and Greenwich, in Connecticut.