The New York Stock Exchange could leave New York state if Albany imposes a transfer tax on stock sales, the chairman of the exchange operator owned by Intercontinental Exchange Inc. said in a Wall Street Journal editorial on Tuesday. .
NYSE President Stacey Cunningham said she and 25 other representatives of the New York securities industry sent a letter to state legislative leaders last Wednesday warning of the unintended consequences of imposing a such tax, which would ultimately be borne by investors.
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“The New York Stock Exchange is owned by New York. If Albany lawmakers are successful, however, the center of the global financial industry may need to find a new home, ”she said.
A NYSE representative declined to comment further.
New York State faces large budget deficits due to the COVID-19 pandemic, which has prompted some state lawmakers to bring forward a bill here that would tax certain financial transactions.
The idea of a new transaction tax seems to have little support from the governor’s office.
When the topic was brought up at a press conference in January, budget manager Robert Mujica said many ideas about these taxes “had not been fleshed out,” according to a copy of the remarks provided to Reuters by a New York State official. Budget Division.
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Mujica pointed to a financial tax that was proposed last year in New Jersey, where many exchanges host their servers, and noted that the exchanges have quickly stepped up to temporarily move their employees and businesses out of the country. State.
The pandemic has shown that people can do business anywhere, he said. “So if we raise the tax like that, you mobilize people, you potentially move your transactions and your servers to another part of the country where those taxes don’t exist.”