Washington DC Metro is by far the wealthiest area of the United States in a broad sense. But there are pockets here and there that are wealthier. Greenwich Connecticut and parts of Manhattan for example.
I’ve never seen more hedge fund money in one place than in Greenwich. It is a remarkable place. Some of the most beautiful homes I’ve ever seen are there, and in abundance.
But if the tax climate becomes unfavorable Greenwich may lose at least some of its appeal.
Trump knows a lot of people who live in Greenwich. And he knows that many of them don’t like him. (Or the “deplorables.”)
The problem for the Connecticut hedge-fund set — and, more broadly, for a lot of the Wall Street crowd — is that Republican proposals in both the House and Senate would drive up taxes for many high-earners in the New York City area. By eliminating the deduction for most state and local taxes, an individual making a yearly salary of $1,000,000 — a figure not uncommon in the financial industry — would owe the Internal Revenue Service an additional $21,000, according to a preliminary analysis by accounting firm Marcum LLP.
Billionaire hedge fund managers have blazed the trail south in recent years. David Tepper, Paul Tudor Jones and Eddie Lampert are New York-area transplants to Florida, which has no personal income tax.
A final bill could still do away with the hike, but so far there are no signs coming out of Washington that will happen. Financially struggling New Jersey had the sixth-highest individual income rate this year, according to the Federation of Tax Administrators. New York ranked eighth and cash-strapped Connecticut 12th. Nine of the 10 states with the highest individual taxes, including Washington, D.C., voted Democratic in the 2016 presidential election.
Now are you starting to understand the “never Trumpers”?