“I think at this point the stock transfer tax is the savior of New York state,” Steck says.
That’s why Steck is sponsoring legislation that would allow the state to keep the share transfer fees it collects.
“The way this bill works is, because of Covid, for two years all the money goes to the general fund to avoid cuts to education and health care etc.,” Steck begins, “ After that, everything goes for infrastructure, including green infrastructure.
The notion of tax on transfers of shares has detractors. Concerns include the depreciation of 401K plans or the possibility of the New York Stock Exchange leaving Manhattan.
“Leaving Manhattan is a bunch of nonsense,” Steck says.
News Channel 13 reached out to Governor Cuomo’s office on Wednesday evening to seek comment. The response came from New York State Budget Director Robert Mujica, who said, “There has been a lot of talk about other taxes, some of which are not even constitutional. The wealth tax, on people who don’t even have their fortune in New York State. The share transfer tax is a misnomer in the sense that it is a tax. “
Mujica went on to say, “As we have seen with the pandemic, people can do business anywhere. They don’t have to do it in New York, they don’t have to do it in the New York City. New Jersey, they can do it. 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. “
Steck vehemently disagreed with Mujica’s position, accusing her of disseminating inaccurate and misleading information to the public.
“Fifty percent of all stocks in the world are traded in New York,” Steck points out, “so what they want is access to that market. A quarter of a percent tax isn’t going not change that, but more importantly, if we think about it, it’s a sales tax. It’s not a tax against Wall Street. It’s not a tax on Wall Street businesses. This is not a tax on Wall Street. is not a tax on the Stock Exchange. ”
For the record, the London Stock Exchange, as well as Germany, France, Switzerland, Hong Kong and Singapore all collect taxes on share transfers. This is another reason why Steck asks, “Why not in New York?”