Stacey Cunningham, president of the New York Stock Exchange (NYSE), criticized in a weekly article last week a proposal by New York state lawmakers to reintroduce a tax on stock transactions, warning that the move would do more harm than good and that the NYSE might abandon New York.
Rep. Byron Donalds (D-Fla.) told the English-language New Tang Dynasty on Tuesday (Feb. 16) that he is urging the New York Stock Exchange to move to Florida, where the company will not face a stock-trading tax problem. transaction tax problem.
“There’s a lot of good land in southwest Florida, and we can find a place for them in the heart of my congressional district.” Donalds said in an interview.
On Feb. 1, New York State Senators Alessandra Biaggi (D), Jabari Brisport (D), Leroy Comrie (D) and Brad Hoylman (D), citing the state budget shortfall, introduced an amendment that would impose a tax on stocks, bonds and derivatives.
In New York, the tax was first imposed in 1905, but was later eliminated in 1981 by way of a rebate.
Donalds said the tax is “outrageous” and he understands why NYSE executives are upset about it. “With our current technology, securities are traded all over the world. They’re traded all over the United States. So if I’m trading stocks in Florida, that means they’re going to be taxed in New York.”
Donalds said, “No, it’s not appropriate to do that.”
Donalds said he wants the New York Stock Exchange to uproot and relocate to Florida, calling Florida’s tax and regulatory environment “a recipe for success” for businesses and lamenting the increasing restrictions on New York businesses.
“New York is my former Home, but it has gone in the exact opposite direction, and that’s why business owners are fleeing here,” he said. He said.
Before Donalds extended an invitation to NYSE to relocate, Jimmy Patronis, Florida’s chief financial officer, wrote to the NYSE president outlining why it would be a prudent financial choice to operate the exchange in Florida.
Patronis said that because Florida’s 4.4 percent corporate income tax rate is nearly one-third lower than New York’s 6.5 percent corporate income tax rate, the exchange’s parent company could realize significant corporate income tax savings.
More importantly, Florida abolished the intangible tax on the market value of stocks, bonds, mutual funds and other financial instruments.
In a Wall Street Journal op-ed on the 9th, Cunningham wrote, “The New York Stock Exchange belongs in New York, yet the center of the global financial industry may need to find a new home if lawmakers in Albany get their way.”
“While New York remains the center of gravity for the financial industry, many employees of ‘Wall Street’ firms are moving to Florida, Texas and other states with lax tax policies.” She writes, “New York’s leaders did the right thing in 1981 when they made the state’s stock transfer tax dormant through a 100 percent rebate.”
“If lawmakers choose to reinstate that tax, the NYSE may need to follow the lead of those relocating companies. Some of our clients are already inquiring about our willingness to relocate.” She added.
In response, the New York Citizens Budget Commission recommended that the state Legislature not reinstate the transaction tax, but instead use other means to close the budget gap, including reducing local aid and cutting spending on some development programs.
Gov. Cuomo has also indicated that he may not support the introduction of a stock transaction tax.
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