HOUSE OVERSIGHT 033159 money pours out of the Northeast (and in some cases, from as far as London and Singapore) and into this already wealthy section of southeast Florida. Approximately 70 hedge and private equity funds are now headquartered here, many of which have set up shop in the last two years, jacking up home prices and spurring a countywide initiative to become, as some have said, "the new Greenwich." For hedge fund managers who might normally be inclined toward Westchester or Connecticut, the allure of South Florida is as plain as grits on toast. The homes are sprawling; the Intracoastal Waterway is a yachter's paradise. It has a glittering social scene. During high season—October through March—there might be several fundraisers on any given night. Perhaps the key factor, however: In Florida, there are no individual income taxes, no estate taxes and no capital gains taxes. A hedge fund manager reporting $1 million in income can expect to pay only the federal government, whereas his counterpart living in Connecticut pays that plus an extra $67,000. And if the poor schmuck were still in New York City? He'd better be ready to fork over $104,300. As for why all of this is happening now, when Florida has long been a sunny tax haven, so to speak, financiers point to the upcoming application of Section 457A of the Internal Revenue Code. Before 457A was enacted, certain fees and related earnings could grow tax deferred in offshore accounts for up to ten years. But now, according to the section, hedge fund managers will need to funnel all of the fees that were deferred before 2009 and their related earnings back into the U.S. by 2017. If a manager lives in Florida when this happens, he's much less likely to pay exorbitant state taxes on the whole amount. If he still lived in New York City? Fuggedaboudit. It's the job of Kelly Smallridge, president and CEO of the Palm Beach Business Development Board, to ensure that hedge fund and privat