IRS: New Residents Add $16B in Fla. Personal Income
PHILADELPHIA – New data released by the IRS show that Florida experienced personal income gains of nearly $16 billion from new residents in 2018 – a 3% increase from $15.5 billion in 2017.
Palm Beach County alone saw a 20% increase, according to the IRS, which tracks changes in personal income through address changes on annual tax returns.
The shift suggests that more Americans are focusing on how much they’re paying in taxes. Moving to a lower-tax state such as Florida can have a significant impact.
“We’ve definitely seen it: waves of people coming in,” says Tim Devlin, a partner and CPA for Daszkal Bolton in Boca Raton. “A lot of it is state income tax driven.” He says that business owners are similarly spearheading the shift to Florida.
“Someone who runs warehouses around the country could still have a corporate headquarters here and allocate the profit to Florida, which has a lower tax rate,” Bolton says.
Economist Jerry Parrish forecasts that Florida will continue adding to its population – as much as 900 people a day.
“It is a major positive, increasing the purchasing power of the region,” says J. Antonio Villamil, economist and founder of the Washington Economics Group in Coral Gables. He adds that consumer spending has “a ripple effect throughout the economy … It means you have a vibrant consumer market and market for real estate and businesses that come here.”
Source: Philadelphia Inquirer (01/25/20) Pounds, Marcia Heroux
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