It’s the Battle of the Ricks for New York’s Wealth
As we have all read, Governor Rick Perry of Texas has embarked upon a major campaign to entice businesses from New York and several adjoining states to relocate to Texas. Through direct mail pieces, TV ads, and an upcoming personal visit, Perry is touting the advantages of relocating to his state, which offers business-friendly regulations, plus a pro-growth policy of zero state or corporate income taxes. He has run similar campaigns in both California and Illinois, which are proving to be quite successful. In this particular case, however, there is another dynamic in play: Governor Perry has now positioned himself to be in direct competition for the bounty of the north against his friend, fellow Republican, and the chief recruiter for Florida, Governor Rick Scott.
The states of the northeast, and in particular New York, have historically been a fertile breeding ground for Florida’s incoming wealth. With all of the migration from New York to Florida, many a Jets or Giants fan has been heard actually touting Florida as “New York’s sixth borough.”
According to newly expanded data from www.howmoneywalks.com, now spanning a nearly 20-year timeframe from 1992 to 2010, the Sunshine State gained $95.61 billion in net adjusted gross income, as defined by the IRS. The state of New York was far and away the largest contributor to Florida’s windfall, sending nearly $19 billion to the Sunshine State. Texas, on the other hand, while gaining $25 billion nationally, only gained $1.66 billion directly from the Empire State. With the tax burdens only increasing across the state, it is a sure bet that the migration of dollars will escalate even further. So it looks like all bets are off, and the Great State of Texas wants a bigger piece of Florida’s action!