Companies Leaving New York in Droves Amid Covid Challenges

New York was once the hub of the US economy, but the Covid pandemic has taken a toll on the city's business landscape. Over 1,000 companies have left the state since 2020, including major players like Amazon and Google.

High taxes and expensive rent have long been a burden for businesses in New York. The pandemic has only made it harder for companies to stay afloat. In fact, the state's corporate tax rate is 8.85%, the highest in the country.

Many companies are also citing the state's strict regulations and high cost of living as reasons for leaving. For instance, the cost of renting a commercial space in Manhattan is around $100 per square foot, making it one of the most expensive cities in the world.

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Companies are leaving New York in droves, with major corporations like Goldman Sachs, Credit Suisse, and Morgan Stanley relocating to states with lower costs and more business-friendly policies. This trend was already underway before the pandemic, but the shift to remote work has accelerated the process.

Many of these companies are setting up shop in states like Florida, North Carolina, and Utah, where taxes are lower and the cost of living is more affordable. For example, Goldman Sachs recently moved its large money management division to Florida, citing the state's absence of a state income tax and warm weather as major draws.

The flight out of New York is being driven by a combination of high taxes, poor governance, and increasing crime rates. New York City Mayor Bill de Blasio's policies, including the decision to defund the police, have made the city a less attractive place to do business.

Companies like Paul Singer's hedge fund and Carl Icahn's business have already made the move to Florida, and billionaire Leon Cooperman, the former CEO of Goldman Sachs Asset Management, has also relocated to the state. He predicts that Florida will soon rival New York as a finance hub.

In fact, moving companies are swamped with customers leaving the city, with one company reporting a 30% increase in business since April. This trend is likely to continue, as companies seek more affordable and business-friendly locations to operate.

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COVID may not be the sole reason for businesses fleeing New York, but it's definitely a contributing factor. According to Bloomberg data, scores of Wall Street firms have continued to leave the state since 2019, taking nearly $1 trillion in assets with them.

The pandemic may have peaked in January 2022, but its impact on businesses persists. Vaccines became widely available in 2021, but that didn't stop firms like Icahn Capital Management from leaving in 2020, taking $22.2 billion in assets with them.

COVID can't be solely blamed for the exodus, though. Other factors like high taxes, crime, poor schools, and the cost of living are also driving businesses away. Florida picked up more than a third of New York's runaways, and it's not hard to see why.

It's not just the companies that are leaving, either - it's the jobs and salaries that come with them. Wall Street firms alone accounted for 16% of the city's economy last year, and their departure has resulted in a monumental loss of tax revenue.

Moving out of New York is a big decision, but it's one that's becoming increasingly popular. Many people are choosing to leave the city due to growing violence and the coronavirus, making the task of moving even more daunting.

Paid movers are working harder than ever, with some companies seeing a 30% increase in business since April. This is according to Nancy Zafrani, General Manager of Oz Moving and Storage, who notes that her team is busier than ever.

The summer heat is making the job even more challenging, as movers have to wear masks while working in the hot weather. They also have to worry about returning safely to their own families after visiting other people's homes.

The pandemic may have changed the way companies operate, but it's also given them options. Many are choosing to relocate jobs to less costly locations, taking advantage of remote work arrangements.

In fact, major cities like New York, Los Angeles, and San Francisco have punishingly high tax rates and lack business-friendly policies. This is driving companies to move to states with lower costs, such as Florida and North Carolina.

The flight out of New York has been in the works before the pandemic, with some companies relocating thousands of jobs to other states. This trend is expected to continue, with some predicting that Florida will soon rival New York as a finance hub.

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Several major companies have announced plans to move out of New York, citing high taxes and rising costs.

One notable example is Amazon, which canceled its plans to build a headquarters in Queens, Long Island City. The company cited opposition from local politicians and the high cost of living in the area.

High taxes are a major concern for businesses in New York, with the state's corporate tax rate being one of the highest in the country. This can make it difficult for companies to stay profitable.

The high cost of living in New York is also a significant factor, with the city ranking as one of the most expensive in the US. This can make it hard for companies to attract and retain top talent.

Several other companies, including Google and Facebook, have also announced plans to move out of New York or reduce their presence in the city. This trend is likely to continue unless something changes to make the state more business-friendly.

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