Monday, October 28, 2019

New York turning into California as JP Morgan prepares to leave high tax state for the business friendly confines of Texas

If you want to see a microcosm of what happens when liberals seek to tax the hell out of the rich, all you have to do is look at the six month tragedy that is the state of Connecticut.  And this is because in just a short period of time after deciding to increase taxes on millionaires and hedge funds, the capital city went completely insolvent after the very businesses they were targeting up and left town.

Gov. Dannel Malloy is waging a bare-knuckle budget battle with state legislators in Hartford, even as that capital city teeters on the brink of bankruptcy. Both sides are trying to staunch the projected $2.7 billion deficit for the new fiscal year beginning July 1 without raising personal income taxes, already among the highest in the nation. 
And while still smarting after General Electric moved its corporate headquarters from Stamford to Boston last year, the Nutmeg State suffered another body slam in early June when insurance behemoth Aetna announced it’s leaving its home office in Hartford after 164 years for new HQ digs in Manhattan (although about 5,000 employees will remain in Connecticut). 
Connecticut is hardly alone among states that have seen corporate residents flee, but marquee names like GE and Aetna make for bad PR, not to mention a deleterious decline in tax revenues. Besides those two exits, several of the state’s high-earning hedge funds have relocated to Florida, causing a steep drop in receipts. - CNBC
Yet sleepy Connecticut is by far not the biggest state to see an outflow of companies once their taxation policies began to focus on the rich.  Illinois, New York, and especially California have seen massive migrations to tax friendly states, and it looks like even Wall Street is getting into the act in the coming months.
A new report via Bloomberg details how JPMorgan Chase & Co. is preparing for the next economic downturn by weighing the option to relocate its Manhattan headquarters to lower-cost financial hubs such as ones in Plano, Texas; Columbus, Ohio; and Wilmington, Delaware. 
JPM spokesman Joe Evangelisti told Bloomberg the bank's new headquarters (likely to be in Texas), will house twice the number of employees than its Manhattan office.
Sources told Bloomberg that hundreds of credit-risk employees have already transferred to Texas. Other sources have said Manhattan will no longer be the location for the bank's compliance. 
Bloomberg noted that other large financial institutions had been exiting NYC for lower-cost commercial hubs across the country. 
Deutsche Bank expanded operations in Jacksonville, Florida; Goldman Sachs has built officers in Salt Lake City; and AllianceBernstein Holding LP announced plans to move its headquarters to Nashville, Tennessee. - Zerohedge
The demographical shifts should be a warning sign to Democrats and Liberals who think they can continue in their 'policy of envy' by promising to tax the rich into oblivion.  But as we saw a few years ago in France when President Hollande instituted his own tax the rich scheme, wealthy companies and individuals will simply pack up and leave town, and make matters far worse for already insolvent states and countries.


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