Is Tax Reform Encouraging Taxpayers to Move To Low-Tax States?
Warm weather and less taxes?! For taxpayers in New York the combination may be too good to pass up according to New York Governor Andrew Cuomo.
Taxpayers paying more than $10,000 in state and local taxes may no longer fully deduct the expense on their Federal return. As a result, individuals living in high-tax states like New York, New Jersey, and California have an extra incentive to relocate to lower-tax states like Florida.
At a press conference held on Monday, Governor Cuomo said wealthy New Yorkers are moving their official residences to lower-tax states as a reaction to the Tax Cuts and Jobs Act (TCJA). According to Governor Cuomo, the TCJA is at least partly responsible for the New York's $2.3 billion budget deficit.
"The federal administration's SALT policy is an economic civil war that helps red states at the expense of blue states, and we are now seeing the potentially devastating effect of it in the form of significantly lower tax receipts," Governor Cuomo said.
In the U.S., seven states have no personal income tax. Those are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.