heard NYC considering implementing financial transaction tax last month. Did it get implemented yet or any update? thanks!
I think eventually, gubmint bureaucrats would find a way to pick everyone's noses to raise tax revenue. I read on Article on Forbes, firms are leaving NYC, (technologies have enabled them to operate remotely and cheaper). Credit Suisse, Goldman Sachs, Morgan Stanley, Barclays, UBS, Citigroup, Alliance Bernstein and an array of other financial institutions have established and aggressively staffed hubs in Florida, North Carolina, Salt Lake City, Dallas, Nashville and other less expensive locations compared to New York.
California is in the same boat, thankfully, thanks to the folks who run the state and the folks who keep them in power. Over 3000 companies and dozens of high profile individuals, Joe Rogan and Elon Musk to name a couple, have left in just the past 5 years. Oracle is one of the bigger names to recently give up on the downward spiraling state. - Ric
I think it is highly unlikely that New York City, or even the state of New York, could successfully implement an FTT. Any such tax would immediately be challenged in federal court as a violation of the commerce clause of the US Constitution, i.e., state and local governments cannot interfere with interstate commerce. In implementing and enforcing such a tax, it would be impossible to avoid all kinds of problems with defining when a transaction is actually subject to the tax. Raises very complex questions involving nexus, i.e., the question of when a transaction has a connection to the city or the state that makes it subject to the tax. To be enforceable, and to pass constitutional muster, any such tax would have to nationwide in the USA. It would have to be a federal tax. BMK
It would most likely be a federal tax if Biden is dead set on levying the FTT to make Wall Street pay for his stimulus package.
Of course during the past 5 years CA created more new companies than any other state, far more than the 3,000 who left. And continues to be a far easier place than any other state to start and grow a tech company or pretty much any company that has an ambitious growth path. If that's your definition of "downward spiraling" one wonders what you would call Mississippi or Nebraska or Kansas or any of the other red state bastions of free enterprise? It doesn't take any skill to be a taker who sets your tax rate low to attract companies who were created in the maker states, not sure I'd be proud of that inability to create things on your own.