Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Will The NYSE Leave New York Over New Taxes?

NYSE’s President has threatened to do just that.

NYSE President Stacey Cunningham PBS

New York Stock Exchange President Stacey Cunningham has threatened to move the exchange out of New York should a new tax plan be implemented by New York State.

In an op-ed published in the Wall Street Journal Cunningham wrote, “The New York Stock Exchange belongs in New York. If Albany lawmakers get their way, however, the center of the global financial industry may need to find a new home.”

“While New York has remained a center of gravity for the financial industry,” added Cunningham, “many employees of ‘Wall Street’ firms are migrating to Florida, Texas and other states with hospitable tax policies.”

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.

At issue is a newly proposed transfer tax on stock sales. If implemented, such a tax would apply to transfers of stocks, bonds, and derivatives. New York State democratic lawmakers are promoting the new tax in order to help cover budget shortfalls caused by the Covid-19 pandemic. State tax revenues across America have plummeted because of shuttered businesses and people left out of work. This means fewer business taxes, income taxes and sales taxes collected while expenditures have risen as states spend a great deal to fight the spread of the Coronavirus.

New York State Senator Julia Salazar, who sponsored the bill, is skeptical, however, that the NYSE will actually move out of the state. She told Forbes, “The stock exchange will not leave New York—one of the largest financial centers on earth—if we pass this bill, which would levy very minimal taxes on specific financial transactions, a policy that has long been implemented by other thriving financial centers around the world.”

Some observers have pointed out that in today’s world it would be difficult to collect on any new transfer taxes. They cite the fact that such transaction no longer need to be carried out within New York City itself, even if the NYSE remains there. People today can make their transactions from anywhere in the U.S. and it does not matter where they live.

New York’s budget director Robert Mujica recently stressed this very point. He said last month in a press conference that, “the only nexus you have with the stock transfer tax is the idea that the transactions occur in the state because the computer servers happen to be here.” But if you move the servers somewhere else, “you move the transaction, you don’t collect anything from the tax,” he stressed.

Whatever happens, whether a new tax is imposed or not, it is hard to believe that the NYSE would ever really move out of New York City.

Newsletter



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Life-Style Health

Medint’s medical researchers provide data-driven insights to help patients make decisions; It is affordable- hundreds rather than thousands of dollars

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

History & Archeology

A groundbreaking discovery in the Manot Cave in the Western Galilee, Israel has unearthed the earliest evidence in the Levant (and among the world's...