‘It was gonna happen in New York whether SALT happened or not…’
(Joshua Paladino, Liberty Headlines) Sen. Rick Scott(R-Fla.) joined CNBC’s “Squawk Box” to discuss residents fleeing New York’s high taxes for the Sunshine State’s low taxes.
Tax flight from New York has escalated since President Donald Trump signed the Tax Cuts and Jobs Act of 2017, which included the provision to cap state and local tax deductions (SALT) at $10,000.
The SALT provision affected high-income earners in high-tax states, and cost wealthy New Yorkers about $14 billion last year.
Manhattan real estate prices have fallen about 5 percent in the past two years. Home sales have declined six quarters in a row.
Scott said New Yorkers fleeing to Florida was “happening already.”
“Before SALT, you had a home over $2 million, you couldn’t sell it. It was gonna happen in New York whether SALT happened or not,” Scott said. “But the truth is, why should Florida taxpayers subsidize taxpayers in New York City?”
About 64,000 New York residents moved to Florida between 2017 and 2018.
“You want to complain about subsidization?,” the host asked. “Florida gets back $15 billion more from the federal government than it puts in every year. New York is subsidizing Florida already.”
“First off, we get half as much money per money for Medicaid as New York gets out of the federal government—half as much,” Scott said.
“You guys get 30 percent more in transportation than we do, and we pay more than you do for transportation … People pay their taxes when they’re working [in New York], then they retire in Florida and get Medicare,” Scott said. “If you didn’t have your taxes so high up here, all those people wouldn’t be moving to Florida and you wouldn’t lose all those Medicare dollars.”
The CNBC host also complained that Florida’s education system is too crowded.
“We’re No. 1 in higher education, according to the U.S. News and World Report,” Scott said. “We’re generally in the top 5 for K-12 education. We already have 650 charter schools, so we’re growing pretty fast.”