%% LOL Nothing like a good trend. That's how Chicago almost lost the MERC; but since Chicago lost enough tax revenue, no more new taxes on Merc. CA + NY hi tax loss is FLA gain..............................................
As I've posted before and even placed a public wager on, there's almost no chance of these being passed especially in states like NJ or NY where there are enough representatives who are representing enough people who make a living off the finance industry that they won't let it happen. And even less of a chance of it sticking around if it does pass. And pretty much a zero chance of it ever impacting the people howling the most about it on these threads. The nearly $1T deficit in an economy that was at the top of it's game in 2019 ownd by a party that controlled both houses and the Presidency for the preceding two years and used it to pass a stunningly I'll advised tax cut on the other hand...that will impact all of us. But easier to scream about the other party spending (when they were completely out of power!) and FTTs that haven't actually happened and probably won't than facing the impacts of the actual fiscal policy that was passed?
So here is some more color on the NJ tax on transactions with some eye popping #'s. Murphy Envisions NJ Trade Tax For Social Justice Agenda: https://www.bloombergquint.com/onweb/murphy-envisions-n-j-trade-tax-paying-for-social-justice-agenda A bill sponsored by Assemblyman John McKeon, a Democrat, calls for a quarter-of-a-cent tax on stocks, options, futures and swaps trading via northern New Jersey electronic data centers. McKeon, in an interview Wednesday, said the state could collect $10 billion annually from entities engaged in at least 10,000 transactions per year. “We have data centers in various states and the ability to move trading outside of New Jersey in a business day,” said Hope Jarkowski, co-head of government affairs for New York Stock Exchange parent Intercontinental Exchange Inc. in Washington. McKeon, the Assembly sponsor from West Orange, described the quarter-of-a-cent rate as flexible -- “a good placeholder, and now conversations take place.” He cast doubt on the ability of data centers to easily move from the Manhattan area, as trading speed can decay over distance. “It’s not like they can flip a switch, and that’s one motivating factor to get them to work with us,” McKeon said. Within five years, he said, he expected that trades will be done wirelessly, a disincentive to build expensive new centers elsewhere. Any proceeds from levies on hundreds of millions of trades processed at data farms inside the state wouldn’t be scored for the fiscal year that starts Oct. 1. But the bonanza from the first-of-its-kind state tax could ultimately become a long-term annual source of revenue for New Jersey. So previously they said billion of transactions and this piece says hundreds of millions of trades processed. And they think they can raise $10 billion annually? The math doesn't add up. But the they mention the quarter of a cent rate as flexible. Sounds to me like once they got this on the book the sky is the limit. Let's hope we never have to find out.
Trading Powerhouses Join Exchanges In Fighting New Jersey Tax Plan: https://finance.yahoo.com/news/trading-powerhouses-join-exchanges-fighting-165906308.html
Hearing some speculation that the NJ bill could indeed be a tax of 0.0025 per share traded. It seems as though a transaction might be considered one share of stock. So a 1000 share trade could be considered 1000 transactions. This might make sense as the author of the bill is claiming it could raise $10b per year for NJ - there's no way 0.0025 per flat transaction gets anywhere close to even $100m. If that's the case this bill is poorly written IMHO. This is probably why the NYSE, Nasdaq and others are coming up with a plan to leave should the tax come to fruition: https://finance.yahoo.com/news/trading-powerhouses-join-exchanges-fighting-165906308.html
"New Jersey’s proposed levy “would hurt the tens of millions of Americans who invest in financial markets to save for retirement and fund their children’s education,” the industry coalition said Friday. “Our members are committed to ensuring that those savers continue to have access to the lowest cost and most efficient markets in the world." I agree the FTT is a horrible idea, but come on. Exactly how many people make over 10,000 trades a year in their retirement fund, which is the trigger for this tax? At least have a modicum of intellectual honesty here. Even if you advocate that HFT makes markets more efficient, which is dubious, the impact of them all paying this tax would be a fraction of a cent per year to any retirement account.
I believe the way it's written the tax would be on on any person OR entity that processes 10,000 or more financial transactions in the state. That would mean if you did a trade in a retirement acct that went through nyse or nasdaq, etc the tax would be passed onto the individual as the 10,000 threshold would be met for sure. The way I'm hearing if now is say 1,000 shares of a stock at $50.00 per share x 0.0025 as each share is considered a transaction (just like how a regular ftt would be figured). That's how the author of the bill get to his $10B revenue number per year and why the exchanges are stepping up to fight this. Let's just hope that if Biden wins and the Dems take back the Senate that they don't push through an FTT on the federal level. I would hope that Schumer would stop the ftt as he oppsed it in 2009: https://thereformedbroker.com/2009/09/15/senator-chuck-schumer-opposes-the-trader-tax/
NJ won't push for tax stock transactions: A tax on stock trades floated by Gov. Phil Murphy is off the table as part of a 2021 budget deal that will include a millionaires tax and a middle class tax cut, the New Jersey Globe has learned. Murphy and legislative leaders have agreed that there will be no further consideration of a proposal to impose a quarter-of-cent tax on every electronic financial transaction. The decision to drop the transaction tax — at least for now –comes five days after the Wall Street Journal reported that the New York Stock Exchange was threatening to move its data center out of New Jersey if the tax plan was adopted. Many of the major U.S. stock exchanges run their electronic trading systems out of New Jersey. From September 28 to October 2, the NYSE is going to run their smallest of five exchanges out of a backup site in Chicago. The timing of the test is significant, since the state budget must be passed by September 30. Legislation sponsored by Assemblyman John McKeon (D-West Orange), the chairman of the Assembly Financial Institutions and Insurance Committee, would have imposed the tax on individuals or businesses that process 10,000 or more electronic financial transactions annually. Murphy did not include the idea in his current budget, but said he was open to supporting it. Sources told the Globe that concept of a tax on stock trades is not permanently dead. The New Jersey Globe first reported today that Murphy and the legislative leadership had agreed to a millionaires tax and a middle class tax cut of $500 for about 650,000 families.
Nasdaq in talks with Texas Gov. Abbott about relocating trading systems to Dallas Ft. Worth, Sources Say: https://www.dallasnews.com/business...locating-trading-systems-to-d-fw-sources-say/ Nasdaq Inc. is in talks with Texas Gov. Greg Abbott about potentially relocating the exchange’s electronic trading systems from New Jersey to Dallas-Fort Worth, according to two sources familiar with the discussions. Other trading exchanges also could be involved in the discussions, both sources said. A spokesperson for the New York Stock Exchange said in a statement that the exchange has "heard from several states eager to be the next home to our data center should New Jersey adopt a financial transaction tax harmful to Main Street investors.” Abbott confirmed the talks with Nasdaq in a tweet after The News published this story online. “They want to flee high taxes,” he wrote. “I let them know that we just passed a constitutional amendment banning an income tax in Texas.” Nasdaq is planning a visit to Texas to meet with the governor, according to one of the sources. Leaders of the exchange have had “a great dialogue” with Abbott, the source said. The exchange, which has 87 employees in the state, is intrigued by an opportunity touted by Abbott to power its electronic infrastructure with renewable energy from wind farms in the state, according to one of the sources. Nasdaq is the trading platform for many of the nation’s environmentally conscious companies. When Facebook invested $1 billion in building its massive data center at AllianceTexas north of Fort Worth, it struck a deal to buy its electricity from a 17,000-acre wind farm under construction at the time. Facebook, which trades on Nasdaq, is now planning to add to its 150-acre campus, which opened in 2017. Dallas-Fort Worth isn’t alone in wooing the stock exchanges. Officials in Virginia, North Carolina and Illinois have also had discussions with Nasdaq, one of the sources said. In a statement to The Dallas Morning News, Nasdaq vice president of communications Joe Christinat said: “We are assessing all options, but our No. 1 priority is protecting the U.S. capital markets and its investors." A spokesman for the NYSE’s parent company, the Intercontinental Exchange, couldn’t be immediately reached for comment. A potential tax on financial transactions in New Jersey, where Nasdaq and other exchanges house the data systems that power Wall Street’s daily trades, is what’s driving the talks. NYSE, Nasdaq and Cboe Global Markets Inc. signaled in September that they would be willing to shift operations away from New Jersey if the state passed the proposed tax. The proposal would implement a quarter-cent tax on every transaction for firms handling more than 100,000 transactions a year. New Jersey Gov. Phil Murphy has said as recently as this week that he supports the tax. New Jersey faces a $5.63 billion shortfall in its current fiscal year as a result of a drop-off in tax revenue during the coronavirus shutdown. On Tuesday, a coalition of trade associations representing about 200,000 financial services workers sent a letter to New Jersey lawmaker John F. McKeon, the proposal’s sponsor, conveying “strong opposition” to the tax. “A [tax] could lead to financial firms moving their electronic infrastructure and the related jobs outside of New Jersey. This would reduce employment and revenue in the state,” the coalition wrote. Last month, NYSE conducted a dry run using a backup system in Chicago to determine how quickly it could move operations out of New Jersey. Nasdaq has performed similar tests. Dallas-Fort Worth is one of the nation’s largest data center markets, with tech giants like Facebook and Google investing heavily in new facilities in recent years. Facebook recently filed plans with the state to expand its massive AllianceTexas facility by an additional 277,000 square feet. Google is constructing a 375-acre, $600 million data center campus in Midlothian in Ellis County.