Follow the People to Profit
President Trump’s new tax law caps the amount that residents in high-tax states can deduct from federal taxes at $10,000 in state and local taxes. In previous years, residents could deduct an unlimited amount of state and local taxes.
The tax change will cause more wealthy businesspeople to flee high-tax states… and the jobs they create will follow them.
According to Forbes, nine of the top 10 fastest-growing cities in 2018 are in states with no state income tax. (The 10 cities are: Boise, Idaho; Seattle; Dallas; Orlando; Fort Worth, Texas; Las Vegas; Nashville; Austin, Texas; Cape Coral, Florida; and Tacoma, Washington. Note that Boise is the only city on the list in a state with an income tax.)
And property values are rising faster in these areas…
According to the National Association of Realtors, the average U.S. home price has risen 5.8% since March 2017.
But certain high-growth pockets are rising even more. Florida real estate is up 7.3% on average over that span. Austin is up 10.8%… and Nashville is up 12.1%.
