Now that's f.u. money! Tepper's Move May Affect New Jersey Budget, Forecaster Warns The decision by billionaire hedge-fund manager David Tepper to quit New Jersey for tax-friendly Florida could complicate estimates of how much tax money the struggling state will collect, the head of the Legislature’s nonpartisan research branch warned lawmakers. Tepper, 58, registered to vote in Florida in October, listing a Miami Beach condominium as his permanent address, and in December filed a court document declaring that he is now a resident of the state. On Jan. 1, he relocated his Appaloosa Management from New Jersey to Florida, which is free of personal-income and estate taxes. His move has state revenue officials on alert. “We may be facing an unusual degree of income-tax forecast risk,” Frank Haines, budget and finance officer with the Office of Legislative Services told a Senate committee Tuesday in Trenton. New Jersey relies on personal income taxes for about 40 percent of its revenue, and less than 1 percent of taxpayers contribute about a third of those collections, according to the legislative services office. A one percent forecasting error in the income-tax estimate can mean a $140 million gap, Haines said. Tepper lived in New Jersey for more than two decades, initially as an executive at Goldman Sachs Group Inc., where he helped run junk-bond trading during the late 1980s and early 1990s. He founded Appaloosa in 1993 and now has an estimated fortune of $10.6 billion, according to the Bloomberg Billionaires Index. That ranked him as the wealthiest person in New Jersey. New Jersey residents bear the country’s third-highest tax burden, according to the Tax Foundation in Washington. Along with the nation’s highest property taxes, it’s one of two states that levy both an estate tax on the deceased and an inheritance tax on their heirs. The income-tax rate for top earners is 8.97 percent. Democratic legislators have repeatedly passed a millionaire’s tax that would increase the levy to 10.75 percent, but Republican Governor Chris Christie has vetoed it each time. http://www.bloomberg.com/news/artic...may-affect-new-jersey-budget-forecaster-warns
Bravo! Just as the Founders intended! When the state gets too greedy on taxes, you don't have to just "bend over and take it"... but rather pack up and move to a more friendly venue! (Too bad we can't get away from being raped by the Feds that way.)
NJ and NY have become hopeless places to do business. All of it stems from the state having to appease the public sector unions with their outrageous pensions and benefits. $450k salaries for school principals. $150k pensions for retired elementary school teachers. $90k pensions for clerical gov't staff. Come set up business in NY/NJ! Where your tax dollars support the finest public sector money can buy!
Until you run out of "other people's money", of course. "Public sector unions".... immoral and corrupt as it gets!
When there's superior alternatives like Florida to live that offer better weather, lower taxes, etc., I'm surprised people live anywhere else.
Their are a lot more high paying jobs at GS's NY office than their Miami office. It's an ecosystem thing as well, Miami just doesn't have it yet in a lot of areas. That said, I'm glad I don't have to live in NY/NJ!
if you have lived long enough that you can choose what state the job you want is in, I doubt you care much about a job. Jobs are for losers. They should publish the losers list every month on the first Friday. It would be an indication of how many people just gave up and got a job. Not that we need it, the number since the beginning of time has always been about 95%.
Ray Dalio's Bridgewater Gets $22M in State Aid To Remain in CT May 27 2016 | 9:46pm ET Ray Dalio’s Bridgewater Associates, the largest hedge fund manager in the world, has convinced the State of Connecticut to give it $22 million in incentives to stay in the state. The Connecticut State Bond Commission approved $5 million in training and energy assistants grants for the firm, as well as a $17 million loan to expand its campuses in Westport, Wilton and Norwalk. The loan will be forgiven if Bridgewater keeps its current 1,402 jobs in the state and creates 750 more. The decision was contained in the minutes of the commission’s meeting Friday, which approved the deal in a 7-2 vote. It comes at a time when the hedge fund industry faces criticism for collecting high fees in return for poor returns. Connecticut has been under pressure to retain major corporate denizens lately, as a moribund economy and heavy reliance on the financial industry means the state’s coffers have struggled to rebound from the financial crisis. The state has suffered two credit downgrades in the past several weeks, and January decision of bellwether industrial company General Electric to relocate to Boston seemed for many to be the logical consequence of the state’s high-tax approach. Bridgewater is not the first financial firm to receive incentives from the state to stick around. In late 2014, Connecticut extended to 2021 an agreement with UBS that, among other things, forgives a $20 million loan provided the Swiss bank keeps at least 2,000 employees in the state. Given Connecticut’s fairly dire fiscal situation, it may not be the last. Connecticut is not also far from alone in dangling incentives to large employers. Massachusetts reportedly offered $150 million to GE if it moved to Boston, while southern states such as North Carolina and Alabama have provided foreign automakers with generous packages in order to convince them to set up production facilities in their states. Indeed, states now routinely compete with one another to keep and attract businesses; efforts to keep Bridgewater in Connecticut reportedly began in 2012 and included fending off neighboring states such as New York. Despite the optics, state incentives are often considered good investments when viewed from a macro perspective, since the economic impact of a large company extends far beyond its headcount. Bridgewater’s planned campus renovations, for instance, will run an estimated $527 million – much of which will find its way into the Connecticut economy. Founded in 1975 in a two-room apartment, Westport, CT-based Bridgewater is the world’s largest hedge fund manager, responsible for $146 billion in assets for institutional investors, foreign governments, central banks, corporate and public pension funds, university endowments and charitable foundations. from FINALTERNATIVES
America's super-rich move around the country far less than everyone else http://www.businessinsider.com/americas-super-rich-are-less-mobile-than-lower-income-workers-2016-6