Wall Street is experiencing a significant shift as financial firms are moving their headquarters out of New York and into states like Florida and Texas. Since the end of 2019, nearly 160 Wall Street firms have made the move, taking almost $1 trillion in assets with them. The reasons cited for this mass exodus include concerns about crime, high taxes, and the increasingly expensive cost of living in the Big Apple. This trend is having a major impact on New York’s economy, as Wall Street accounted for 16% of all economic activity in the city and 7.3% statewide. The loss of financial firms also means a decline in tax revenue, as they accounted for $5.4 billion in New York taxes and a quarter of all personal income tax collections. The impact of this migration is not limited to New York, as California has also lost $1 trillion in financial assets to lower-cost states. Major firms, such as Goldman Sachs and Wells Fargo, have invested heavily in cities like Dallas, where the cost of living is significantly cheaper. These firms are not only relocating their headquarters, but also creating jobs and stimulating the local economies of their new locations. Overall, this mass migration poses a significant challenge to New York and other high-cost regions, as they lose businesses, tax revenue, and skilled workers to more affordable areas.
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