Has Latest New York ‘Tax Flight’ Begun?

The “tax flight” that New York feared would result from the new federal tax law may have begun.

Stonepeak Infrastructure Partners, a $15-billion firm led by former Blackstone Group LP dealmakers, is planning to open an office in Austin, Texas, in part to protect its executives from potentially higher New York state taxes, according to a memo sent to investors that was obtained by Bloomberg News.

New York businesses, anti-tax conservatives, and leading tax practitioners aren’t surprised and predict more, similar moves in the future.

“The lure of New York in the past has been access to financial and professional ...