The larges ones with HQ there are mostly financial/insurance.
Alone-Experience9869 on
I believe for the opportunities, the business environment, human talent, etc. there is business structure provided that not everywhere provides.
jammu2 on
They might have HQ there, but they are domiciled for tax purposes in Delaware or somewhere offshore.
Forgemasterblaster on
Talent is the easiest answer. Compensation is greater and people figure out how to adjust COL to be in nyc.
It’s the only top 5 US city with cool shit and no need for a car, which is like most other global cities (London, Singapore, Hong Kong, Paris).
Best place in the US for many industries and industries that support those businesses. Real Estate is an example. Biggest developers are in nyc. Capital is here. Expertise for lawyers, accountants etc. same for banking. Goldman, citi, JP, etc have century old footholds.
So companies look around and figure it’s better to be where the best people want to be rather than try to force people into some other area.
iSoLost on
Talents, real estate appreciation, business oppt, competitive advantage
GradatimRecovery on
You might think an NYC headquartered multi-state or multi-national business pays NYS and city taxes on their national or global income. That’s not the case. The state and city only tax the portion of total business income that is allocated or apportioned to their jurisdiction.
If that still leaves you wondering why they’d have an office in a high tax jurisdiction at all, it’s most likely for practical reasons like access to talent, regulators, and vendors that they can’t elsewhere.
Don’t let the tax tail wag the dog
InlineSkateAdventure on
Because they feel there is some value in the people NYC attracts. Businesses afraid to spend money rarely make money. Buying the cheapest car isn’t always the best choice.
And at one time it had a huge prestige associated with it, that remains somewhat today but not as strong.
jracpa on
Opportunities, access to talent, etc. Similar to the Silicon Valley effect.
Odd-Razzmatazz-9932 on
Talent and Broadway.
IranianLawyer on
Because that’s where the largest pool of educated and talented professionals are.
kanye_come_back on
In NYC you have a much easier time pulling top talent, finding capital, and frankly rich people (in these businesses) want to live in NYC not Arkansas (no offense.) Companies do move to cheaper areas and engage in tax tricks but NYC is a strong economic region.
No_Satisfaction_4394 on
Bottom line….corruption. Corrupt politicians are easy to buy and own there.
bradd_pit on
Letting tax drive all your decisions is the best example of “the tail wagging the dog”.
Tax should be a concern but not the primary concern
Upset-Kaleidoscope45 on
There’s prestige to it. As opposed to having a HQ in suburban Minnesota or somewhere like that. Also, I imagine a lot of wealthy powerful C-suite types, lawyers, and other professionals don’t want to waste their lives in some third-tier city that doesn’t offer the same things that a cosmopolitan capital of the western world does. It’s self-sustaining in that way.
patrick-1977 on
A big building in Manhattan does not always mean they are fiscally tied to NY. I believe the HQ of Starbucks is a mailbox in Amsterdam, for example.
hesuskhristo on
Who do people take a job with a higher salary when their overall tax rate will be higher?
Magiamarado on
Good luck finding niche good employees in Alabama. Also, NYC has immediate access to financing entities, lawyers, tax experts, and consultants. You have none of that elsewhere.
19 Comments
Because not everything is about tax
The larges ones with HQ there are mostly financial/insurance.
I believe for the opportunities, the business environment, human talent, etc. there is business structure provided that not everywhere provides.
They might have HQ there, but they are domiciled for tax purposes in Delaware or somewhere offshore.
Talent is the easiest answer. Compensation is greater and people figure out how to adjust COL to be in nyc.
It’s the only top 5 US city with cool shit and no need for a car, which is like most other global cities (London, Singapore, Hong Kong, Paris).
Best place in the US for many industries and industries that support those businesses. Real Estate is an example. Biggest developers are in nyc. Capital is here. Expertise for lawyers, accountants etc. same for banking. Goldman, citi, JP, etc have century old footholds.
So companies look around and figure it’s better to be where the best people want to be rather than try to force people into some other area.
Talents, real estate appreciation, business oppt, competitive advantage
You might think an NYC headquartered multi-state or multi-national business pays NYS and city taxes on their national or global income. That’s not the case. The state and city only tax the portion of total business income that is allocated or apportioned to their jurisdiction.
If that still leaves you wondering why they’d have an office in a high tax jurisdiction at all, it’s most likely for practical reasons like access to talent, regulators, and vendors that they can’t elsewhere.
Don’t let the tax tail wag the dog
Because they feel there is some value in the people NYC attracts. Businesses afraid to spend money rarely make money. Buying the cheapest car isn’t always the best choice.
And at one time it had a huge prestige associated with it, that remains somewhat today but not as strong.
Opportunities, access to talent, etc. Similar to the Silicon Valley effect.
Talent and Broadway.
Because that’s where the largest pool of educated and talented professionals are.
In NYC you have a much easier time pulling top talent, finding capital, and frankly rich people (in these businesses) want to live in NYC not Arkansas (no offense.) Companies do move to cheaper areas and engage in tax tricks but NYC is a strong economic region.
Bottom line….corruption. Corrupt politicians are easy to buy and own there.
Letting tax drive all your decisions is the best example of “the tail wagging the dog”.
Tax should be a concern but not the primary concern
There’s prestige to it. As opposed to having a HQ in suburban Minnesota or somewhere like that. Also, I imagine a lot of wealthy powerful C-suite types, lawyers, and other professionals don’t want to waste their lives in some third-tier city that doesn’t offer the same things that a cosmopolitan capital of the western world does. It’s self-sustaining in that way.
A big building in Manhattan does not always mean they are fiscally tied to NY. I believe the HQ of Starbucks is a mailbox in Amsterdam, for example.
Who do people take a job with a higher salary when their overall tax rate will be higher?
Good luck finding niche good employees in Alabama. Also, NYC has immediate access to financing entities, lawyers, tax experts, and consultants. You have none of that elsewhere.
Talent and capital.