The COVID-19 pandemic is likely to come to an end in 2021, but that doesn’t mean New York City’s biggest employers—the megabanks and Wall Street firms—are rushing to return to the Big Apple.
FOX Business has learned that even with a vaccine that could allow city employers to filter all their workers back into Manhattan offices by late spring, every major Wall Street firm is drawing up plans to significantly slash its presence in the city for the foreseeable future.
siness. Those factors include the now proven ability to work outside the office – which in low-cost states like Florida and Texas — could slash already high Manhattan real estate costs.
But maybe the biggest factor, these people say, is a lack of faith in the ruling political class in New York.
Bankers are blaming New York City Mayor Bill de Blasio for allowing crime to reach new highs during the pandemic, and Gov. Andrew Cuomo for brutal lockdowns that have decimated the small businesses and quality of life in the city.
Earlier today both Cuomo and de Blasio, warned full shutdowns may be ahead.
Lobbyists also fault both men for threatening massive tax increases on bankers and banks to plug the massive COVID-related budget shortfalls of New York City, New York State and important state agencies like the Metropolitan Transportation Authority.
“There’s no question we will see a significant loss of Wall Street talent beyond the pandemic — how long that lasts and how deep the exodus becomes is a function of whether the political class continues to demonize success,” said Kathryn Wylde, the president of the Partnership for New York City, a nonprofit group that advocates for the city’s elite businesses.
The partnership, Wylde told FOX Business, has met with local politicians warning that the planned tax increases — that have recently been broached by both Cuomo and de Blasio—will only expedite the trend of banks moving workers to low-tax states. Florida and Texas, for example, do not have state income taxes.
Last week Oracle joined Hewlett Packard Enterprises in moving headquarters to Texas from California. The Golden State rivals New York when it comes to taxes on individuals and businesses. Tesla CEO Elon Musk chose the state for his latest factory and relocated his personal residence to Texas as well.
Read the rest at: Mass Exodus