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HedgeCo CEO Evan Rapoport on the tax advantages that are motivating many to move to the state.
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It escaped from New York.
You know it's not just something retirees say a growing number of working professionals are leaving new York and other states in the northeast for better conditions down south.
And -- -- not just leaving for a lower taxes and more sunshine so what's the big drive joining me now -- Rappaport.
CEO of PepsiCo who is from New Jersey and now calls West Palm Beach is -- -- I can't tell you have been to West Palm Beach many times that's a nice place to live my friend.
Congratulate -- CEO.
Thank you so much Gerri thanks for having me also you you're welcome good good to have you here tongue -- to how you came to make this decision what was at that pushed out of New York.
-- glad he did it.
Oh absolutely well I I am some of -- went down to the University of Florida for college and was dying to get back frankly so I went.
And worked on Wall Street for seven years and when I started my own company.
I have the ability to go ahead and an open up down here and West Palm Beach.
I think some of the deciding factors wore the affordability.
Certainly of starting a business down here in the operational expense which was in a much lower than it would be -- New York City.
All right let's show folks what state and local taxes look like New York compared to Florida New York 14%.
Florida at 0%.
What does this mean to you in dollars and cents for your company.
Well I mean means a lot and and we talk about the hedge fund industry in general.
-- and I I think these numbers are critically impact -- -- -- let's take an example write a fund manager who makes a million dollars a year which is not unusual in our industry.
He's getting taxed if he lives in New York City at fourteen point 7%.
That's a 147000.
Dollars that's very impact fall and and and.
Not -- average -- painful my friend I'm talking I'm -- crying yourself to sleep every night.
I've absolutely that's a lot of Dell a lot of money and then you've got a pile on federal income taxes on top of that and goodness knows what else.
You know -- -- just running some numbers because you know professional sports figures get a lot of attention on this score.
We've figured out the tiger would say -- hundred million dollars over the course of his golf career sixteen your career if he had moved to a note income tax state.
And Phil Mickelson has been talking that was very publicly recently with say 53 million dollars.
Do you think that your the canary in the coal mine here that lots of people are gonna follow you.
Well yes and tiger is a resident of Florida so tigers a resident of Jupiter which is not too far from last night I -- around.
But but not not that but you know Phil Mickelson made that that that point all somebody's giving away a large sum of his income.
My living in California and if he was to move to Florida he would save the quite a lot of money and I think there was probably some of the reasons behind.
You know even some of the sports figures as you've mentioned moving down here.
Like some of the members of the Miami Heat.
Well you -- you've you've mentioned taxes but there are other reasons to what are the other attractions.
That's a living in Florida.
While sort of taxes you certainly have a great lifestyle.
For those that enjoy -- activities voting.
Fishing.
Playing golf year round -- tennis I think Florida second to none.
Also the -- -- the haven't they can they can get.
That commute time I don't have I have probably fifteen minutes of a commute I have no tolls to pay.
My parking on a monthly basis you're ready 25 dollars a month -- -- Jackson in order and property taxes like.
Property taxes are low it depends on the municipality but you know -- certainly less than let's say 2%.
And so the sales tax is lower how about know what state tax Jerry.
And so when you're talking while planning your State's.
-- give -- to give away six to 10%.
Of your money to the state.
It's it's a big number.
Our I have to go for one more graphic here because I found it fascinating.
We went to united they analyzed to ask okay where -- people leaving from.
New York New Jersey Connecticut Michigan Illinois with the big inbounds states DC Washington DC because they have all the money.
Oregon Nevada North Carolina -- that's where I'm from South Carolina so people who don't -- -- That's definitely the case they tell us a quick story before we came to air saying that.
You were able to actually nab.
A present for your company that you otherwise would not have been able to get if you if he would -- And moved to new Yorker New Jersey.
That's -- and he's a perfect example.
-- -- -- president Brett Lambert he was a managing director UBS and down and every day he would wake up at 430.
And he would get today to the office after going through tremendous commute from New Jersey spending a ton of money.
On on gas on tolls on.
And parking.
Finally get into the office in getting home late in the evening and what they did was.
It did this allowed him to enjoy his his child's.
Or that -- his child's life.
Where he he'd be basically missed out right because he didn't see them grow up he he.
He miss them because of the -- and because of the workload whereas here he's able to come to work at 830.
Go home at 530 and enjoy that time with his children that he otherwise would not have.
-- able to have wow I can so relate to that.
Until push all the prices in Florida through the roof on real estate other people may wanna buy I may join you haven't they still pretty broad Jerry -- up up -- -- Thanks so much.
My pleasure thanks for -- --
