Scientists have long warned that parts of Miami Beach could be submerged by rising sea levels by the middle of this century, threatening thousands of properties.
Yet, against the odds, the Florida city is enjoying a boom. Businesses, entrepreneurs and billionaires are flocking to the Sunshine State, drawn by its pro-growth ethos, minimal taxation, and support for enterprise.
Miami’s temperate climate and relaxed pandemic restrictions have played a part, but many say Florida’s real allure lies in its generous business environment. It has no state income tax, imposes a relatively modest 5.5 per cent corporation tax, and leaders such as Governor Ron DeSantis and Miami’s Mayor Francis Suarez have consistently touted their state’s welcoming approach to investment. In a country otherwise led by President Trump, Miami’s business-friendly stance is often described as a continuation of his low-tax, high-growth philosophy.
This strategy of encouraging inward investment appears to be paying off handsomely. Florida’s economy expanded by nearly 22 per cent between 2019 and early 2024—twice the national rate—with an influx of new residents boosting its population growth. High-end house sales over $1 million have soared, reflecting the arrival of affluent buyers. Ken Griffin, the billionaire founder of Citadel, shifted his hedge fund from Chicago to Miami, spending a record $107 million on a four-acre estate. Paul Singer of Elliott Management and financial giant Blackstone are also rapidly expanding in the city.
Mayor Suarez has gone further by courting Saudi Arabian investors, keen to open a new office in the city. The willingness of Florida’s government to strike tailor-made deals is exemplified by Disney World’s special tax district—significant even after high-profile spats over social policies. Sam Bidwell at the Adam Smith Institute says Florida’s tax approach, which focuses more on sales than income, has fewer negative impacts on economic behaviour.
Still, Miami has its shortcomings: its population is only around 456,000, making recruitment a challenge, and the city’s 2.4 per cent unemployment rate—half the national figure—reflects a tight labour market. Some business ventures do clash with politicians, as Disney found out when it cancelled a planned $1 billion corporate campus amidst a row with DeSantis over education policies.
Yet for Britain, currently grappling with sluggish growth, Miami’s economic ascent raises questions about how to attract—and retain—investment. Rising numbers of high earners have been leaving the UK, taking their capital elsewhere. Eddie Trump, a real estate developer who shares a surname but no familial link to President Trump, believes Florida’s tax regime and enthusiastic pro-business culture are key: “I think most people come because it is very much a welcoming society for business.”
As Britain’s policymakers weigh the pros and cons of different fiscal strategies, Florida’s example provides a compelling case of how low taxes, lean regulation and an accommodating attitude toward enterprise can spur an economic boom—even in areas facing significant environmental challenges.
Read more:
Miami’s low-tax revolution: a blueprint for global growth