Why Millionaires Leaving NY City is a Big Deal

With President Trump's announcement (which I expect the city of NY to pounce on his tax movement scheme, and accuse him of still being attached to NY City)....you need to stand back, admire the landscape and wonder about the future in NY City. 

Because of various tax laws being pursued and the cost escalating....if you were fairly well off (say 10-plus million a year rolling in)....the taxation from NY state and the property tax in NY City....would eventually put you into Trump's mindset.

So let's say that in 2020....a hundred of these ultra-wealthy folks from NY City and maybe 1,000 of the semi-wealthy (those making $500k a year) realize the tax savings of Florida, or one of a dozen tax-friendly states, and leave.  Who replaces them, or moves into their expensive condos?  For a year or so, there might be some folks with desires to live in NY City, and they'd buy the Trump-houses or Trump-condos.  But you'd reach a stage where the super-wealthy are not longer interested.  They can easily fly in, and stay at some hotel....so why establish a house or condo there?

Around three years down the pike, you'd have lesser wealthy people established in NY City, and the tax revenue 'boss' would come up and tell the governor that there is a problem now existing (they would be missing 300-million to 500-million dollars in revenue).

Naturally, they'd think it was temporary.  A year later....the amount would double.

Around by 2025, there would be some major meeting where the mayor and governor had a chat.  They would aggressively go after people who'd left, and accuse them of still having NY City connections.  The lawyers would smarten up and put the city on the defensive.  These cases would be harder to prove.

By 2030, you'd have NY City in a tough position....cutting firemen and police, to reach a smaller budget.  No one would want to admit defeat. 

By 2035, you'd have the state of NY, wanting to cut the city off, to make two separate states.  One would have a balanced budget, the other would be in serious debt. 

Whether they like it or not....NY has a serious problem brewing.