DB2
2 Likes
Maybe no state income tax is attractive. And close to parents. Why not?
No state income tax in Washington.
Steve
1 Like
Just thinking of a number of the comments on this board about Florida…
DB2
2 Likes
Hmmm. Florida has no capital gains tax. Maybe Bezos is thinking of selling some of his Amazon stock.
DB2
I’m surprised he has two nickles to rub together after the divorce.
Steve
It must have been a reasonably amicable divorce because she only got about a quarter of his stock—which was still enormous amount of money. Washington is a community property state, so in theory she could have got half.
Maybe she’s coming back for another bite?
Steve
From November:
And from the end of last month…
Jeff Bezos completes 50 million Amazon share sale, nets $8.5 billion
https://www.msn.com/en-us/money/companies/jeff-bezos-completes-50-million-amazon-share-sale-nets-85-billion/ar-BB1iFHpz
A regulatory filing released earlier this month revealed Bezos’ plan to sell 50 million shares by Jan 31, 2025. Sales kicked off on Feb 7 and wrapped up on Tuesday…
Bezos’ recent move from Seattle to Miami means he can sell without worrying about Washington state’s new 77% capital gains tax. The move to Floride could save him nearly $600 million in taxes.
DB2
3 Likes
I think the capital gains tax is 7%. Not 77%. $600M is about 1/3 of 1% of his net worth. Plus the article appears to assume that the entire net on the sale is capital gains if I am reading it correctly.
4 Likes
Yep, that’s a typo. Still, hundreds of millions of dollars makes it worthwhile to move. We’ve had other threads about people and businesses moving south, as you may remember.
DB2
2 Likes
I can’t speak for any multi-billionaires, but a tax of $600M drops his net worth from 191.6B to $191.0 B. I would not assume that taxes were his primary motive for moving on those facts.
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When a few more leave they’ll have to raise the tax to 8%
When a few more leave they’ll have to raise the tax to 9%
When a few more leave they’ll have to raise the tax to 10%
When a few more leave they’ll have to raise the tax to 15%
When a few more leave they’ll have to raise the tax to 20%
The Captain
There ain’t no free lunch. 
3 Likes
Also, he says he is moving to be nearer his parents and his space firm. Why not take him at his word?
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Have you seen the new girlfriend? I suspect Lauren Sanchez much prefers the nightlife of Miami than Seattle.
You got to know who wears the pants in a relationship. It is generally the one who doesn’t.
Because of the timing.
That too.
DB2
If Bezos had moved from Seattle to Waco TX, I’d agree with you that it was probably the tax benefits. But moving to an island on the Biscayne Bay next to Miami? I’m guessing lower taxes wasn’t the main draw. One will probably pay more in hurricane insurance, storm damage, and association fees than one saves in taxes.
FYI, here is a more detailed description of the Billionaire Bunker (from a climate change perspective) where old really rich people go to sunbathe and frolic with others just like them. Much better than having to deal with the masses of working stiffs that make life so inconvenient. Perhaps he will have albaby as a neighbor.
On the bright side, that’s two more people in Florida who may not always vote red.
Just wanted to point out in edit that Bezos didn’t move to a red county in Florida. Even in a red state, blue is more attractive.
5 Likes
No mere lawyers on that island, I can tell you.
We’ve seen a bit of an influx of corporate tech and finance titans into Miami in the post-Covid world - more than in years past. It’s not just generic state tax policy that attracts very wealthy retirees and near-retirees. That was always the lure of Boca Raton and West Palm Beach. That’s where the rich folks who wanted big houses and access to nice golf courses and art galleries and other rich people to have charity functions used to go to.
I think the Lauren Sanchez explanation is closer to the truth, though just as much appealing to Bezos. In the last two decades, Miami has really become more of a global city. We’re not yet a City - nothing like a New York or London or Paris or Tokyo. But if you asked people around the world to name three cities in the U.S., Miami would probably be on that list more than any other city besides NY and DC.
Honestly, rather than tax policy, I’d put the finger on Zoom. Generally, of course - the rise of remote work, video conferencing, and other advances in communication over the last decade have allowed tech and finance moguls to have even fewer downsides to living wherever they want. Which makes living in a place with nice beaches, plenty of nightlife and fine dining, and the ability to have a big waterfront house with lots of land very attractive in a way that used to be only realistic for rich retired folks.
3 Likes
Still, over half a billion dollars will get anyone’s attention, even Bezos or Musk.
And the timing certainly worked out well. 
DB2
Well, if you’re planning a move from a high tax state to a low tax state, it would clearly make sense to delay large transactions that result in hefty capital gains taxes until after the move. Almost everyone who is well informed does gains realization timing for tax purposes.
1 Like