Well it sounds like New Jersey Gov. Murphy is very seriously considering taxing high volume trades that are processed in the state (as most stock trades are these days). This New Jersey tax would be a little different than the other ftt proposals floating around as it would charge a quarter of a cent per financial transaction at entities processing at least 10,000 annually via electronic infrastructure in the state. So basically .25 per every 100 shares ($2.50 per 1000 shares). https://finance.yahoo.com/news/murphy-very-seriously-mulling-jersey-181149075.html "New Jersey Governor Phil Murphy said he is “very seriously” considering a tax on high-volume electronic trading in the state, home to Wall Street’s massive server farms." "If implemented, the tax could generate billions of dollars, said Larry Tabb, head of market structure research for Bloomberg Intelligence. Costs would be passed on to investors and would probably reduce trading and force exchanges to relocate over time." On top of that the democrats in New York state are calling for the Stock Transfer Tax to be back onto the books: https://www.pionline.com/markets/new-york-state-looks-tax-stock-trades-revenue-free-fall Mr. Steck's bill calls for a tax of 1.25 cents on a sale of stock worth $5 or less a share to as much as 5 cents for stocks worth more than $20 a share. Revenue would be targeted to New York's general fund for three fiscal years. Afterward, it would used for infrastructure, with the Metropolitan Transportation Authority getting 25%. Wall Street is responsible for 17% of state tax revenue and 181,200 jobs, some of which could be jeopardized if trading volume falls, securities industry groups say. Freeman Klopott, a spokesman for Democratic Gov. Andrew Cuomo's budget office, said a tax could just cause firms to shift trading elsewhere. "In the digital age it would be even easier for transactions to simply be moved out of state to avoid the tax," he said. A serious discussion of the levy may prompt threats by the New York Stock Exchange, owned by Atlanta-based Intercontinental Exchange to relocate, according to Mr. Silverman, the Bloomberg Intelligence analyst. This is a good article that talks about both the New Jersey and the New York state taxing proposals: https://taxfoundation.org/new-york-financial-transaction-tax-new-jersey-financial-transaction-tax/
So now it's LAYERS of FTT. One from the feds and another from the state. Nice!! Kinda like being taxed on the content weight of a flushed toilet, and another on how long the the flapper valve stays open. Of course, federal and state employees and pensions will be exempt.
Dear Democrats, How about for ONCE you CUT SPENDING instead of creating more taxes! You can start with the obscenely large pensions for public workers.
This. Has anyone ever worked out the net present value of a pension paying say 50K/yr (low for this group)? How much would a private citizen have to save to generate equivalent income?
We could raise spending and cut taxes at the same time and let the next administration deal with it. that seems to be pretty popular with everyone. Cutting spending is unpopular unless it’s for a cause you don’t care as much about.
It sounds like it's a flat .25 cents per transaction, not per share. The Tax Foundation article does give the example of $2.50 per 1000 shares, but I don't see where they're getting that. The actual bill they link to just says "The tax is $0.0025 (a quarter of a cent) per financial transaction processed in New Jersey." The New York tax looks like it could be a bigger deal, but it looks like Cuomo is against it, and it's unclear if it has support in the legislature. There's an interview with the bill sponsor from May where he bemoans opposition by Cuomo and the state senate.
And this is how server farms get moved to Nashville and Austin. It truly takes an idiot to think that taxing servers is a captive source of easy tax income.