Richardcyoung.com

The Online Home of Author and Investor, Dick Young

Welcome to Florida

By

MAYPORT, Fla. (June 7, 2017) Florida Gov. Rick Scott, center, poses for a photo with Airman David Barba, left, and Aviation Boatswain’s Mate (Fuels) 3rd Class Andrew Miller in the Suribachi Room aboard the amphibious assault ship USS Iwo Jima (LHD 7) following an all-hands call. During the all-hands call, Scott presented the Florida Medal of Merit to Miller and Barba, who provided aid to victims of the Times Square attack on May 18. (U.S. Navy photo by Mass Communication Specialist 2nd Class Hunter S. Harwell/Released)

In response to reports of the sagging luxury real estate market in Manhattan, blaming the capping of the State and Local Tax deduction for the drop in demand, Senator Rick Scott of Florida has written an op-ed in the Wall Street Journal explaining exactly why New Yorkers are fleeing to low tax Florida. He writes:

A recent article in a Beltway publication warned about a potential recession and considered how it might affect President Trump’s chances at re-election. The story began—no joke: “The luxury real estate market in Manhattan is sagging.” It goes on to argue that softening in the real-estate market in high-tax Northeastern states is caused by the 2017 tax-reform law. Thus the claim is that because taxpayers can deduct only $10,000 in state and local taxes from their federal returns, America is heading for a recession.

Nonsense. The tax-reform law stops high-tax states from burdening the rest of us with their irresponsible decisions. America is a marketplace where states are competing with each other, and New York is losing. Their loss is Florida’s gain—and Texas’ and South Carolina’s and Ohio’s and Indiana’s.

I would like to tell New Yorkers on behalf of the rest of America that our hearts go out to you for your sagging luxury real-estate market. But you did this to yourself, and you can fix it yourself. If you cut taxes and make state and local government efficient, maybe you can compete with Florida again.

I’m an outsider to politics and spent most of my career in business. I ran both small and large companies—a doughnut shop and the country’s largest health-care provider. I employed hundreds of thousands of Americans and was responsible for making payroll for most of my career. But I grew up in public housing, in a family that struggled for work. I know how important it is to get people back to work.

When I ran for governor in 2010, I evaluated Florida as a turnaround opportunity. It had great assets—and, more important, great people—but was suffering from mismanagement and a lack of leadership. The naysayers said a businessman can’t make government work. They were wrong. My administration cut more than $10 billion in taxes and more than 5,000 burdensome regulations. Florida businesses created nearly 1.7 million new jobs. We paid off more than one-third of our state debt over my eight years as governor while we made record investments in education, transportation and the environment.

I made more than 20 trips to high-tax states like California, Connecticut, Illinois, New York and Pennsylvania to lure businesses to Florida. The tax-happy leaders of those states were furious, which made the visits all the more enjoyable for me. They called me every name in the book. But they were the ones who raised taxes, and bad decisions have consequences.

The elites in New York and Washington should commission a study of Florida to see what happens when conservative ideas are put into practice. The luxury real-estate market in Manhattan may be sagging, but Florida’s economy is thriving, expanding at a record pace.

It is within the power of high-tax state politicians to relieve their constituents of the burdens of the cap on State and Local Tax deductions. Simply lower the state’s tax burden and watch growth soar, citizens stay, and businesses flourish. The ideas are not new:

People will go where their money is treated best. Politicians in high tax states view their constituents’ money as an asset with which to fund their dreams. The citizens think otherwise, and they are voting with their feet.

Originally posted on Your Survival Guy.

The following two tabs change content below.

E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.