While its New York office will remain open, Elliott is also setting up a new office in Greenwich, Conn., the wealthy enclave northeast of the city. The new offices in Florida and Connecticut are expected to open before next July, the earliest date its employees could return to the office, the person said.
“It’s certainly not a positive signal,” said E.J. McMahon, an adjunct fellow at the Manhattan Institute, a conservative think tank that Mr. Singer has chaired since 2008. Mr. McMahon described the city’s tax base as “enormous but also fragile.”
For wealthy taxpayers, moving to Florida can provide a significant windfall.
Unlike New York State, Florida has no individual income tax, estate tax or capital gains tax, which the state has promoted in a concerted effort to recruit financial firms from New York.
Still, Ben Friedland, a New York real estate broker who specializes in hedge funds and private equity firms, suggested that the recent moves may have more to do with the age of the companies’ leaders than anything intrinsic to New York City.
“Historically there is a certain segment of the population who, after living in the northeast for the majority of their lives, decide to move south, whether to Florida or elsewhere,” said Mr. Friedland, the vice-chairman of the New York office of CBRE, a commercial real estate brokerage. “So these moves might be correlated to life stage, as opposed to anything else.”
Mr. Trump’s 2017 tax cuts imposed a $10,000 limit on state and local tax payments that families can write off on their federal income taxes if they itemize deductions, which disproportionately affects wealthy residents of high-tax states like New York. So far, however, there is little evidence to suggest the elimination of that deduction has sent wealthy New Yorkers fleeing to lower-tax states.
Mr. Singer, 76, did not return an email seeking comment.
While Mr. Singer will not personally relocate to Florida, the firm’s co-chief executive, Jonathan Pollock, has moved there to work out of its new headquarters, the person said. Mr. Singer, who is worth an estimated $3.6 billion, is expected to spend most of his time in the Northeast, including at an apartment on the Upper West Side of Manhattan.