It does seem small, although inline with some of the existing regulatory fees. The wording looks pretty clear to me, but I'm happy to be proven wrong if anyone can point to something that says otherwise. The Yahoo Finance article says "There are reportedly billions of financial transactions processed daily," but I'm having trouble verifying that.
New Jersey and New York are thinking of taxing financial transactions
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So, multiply your daily transactions by 0.0025.
And that’s how servers get moved to Nashville or Austin.
And that’s how servers get moved to Nashville or Austin.
Idiots without common sense.
Smart money moves away from taxes. I know this simple statement is hard to comprehend for many. Common sense is uncommon after all.
Smart money moves away from taxes. I know this simple statement is hard to comprehend for many. Common sense is uncommon after all.
Yeah cutting spending for things like police and first responders is wildly popular with people who don’t actually pay any taxes
Honestly I'm not sure how we are supposed to interpret the tax. I was just going by what the tax foundation article says at a rate of $2.50 per 1000 shares.
In another PDF version of the bill it says this:
"SYNOPSIS Imposes tax on high-quantity processors of financial transactions at $0.0025 per transaction."
"The tax is $0.0025 for each financial transaction processed 21 through electronic infrastructure located in this State."
Here is another article I found on the NJ tax:
Could a quarter-penny tax on stock trades help New Jersey's budget gap?
https://nj1015.com/could-a-quarter-penny-tax-on-stock-trades-help-njs-budget-gap/
This is a quote in the article from the author of the bill:
“We’re talking maybe about a quarter of a penny on each transaction, and considering the gross volume of transactions that happen on Wall Street and particularly the ones that happen in New Jersey,
“I hold no animus, so I don’t mean to give that impression, that Wall Street’s evil or otherwise,” he said. “It’s just that number one, they can afford this. It’s a pittance on these transactions where people are making multiple millions of dollars.”
He also mentions that he doesn't think the exchanges would move their servers to avoid the tax:
It also contends that it would be relatively easy to move the trades out of New Jersey, perhaps to the Chicago Stock Exchange, to avoid the tax.
McKeon said he doesn’t think that would happen because it would be costly and the companies would be at a disadvantage if high-speed trades aren’t initiated as close to Wall Street as possible.
“They need to be as close as they do. If that wasn’t to their advantage, they wouldn’t be,” McKeon said. “They’d go out to Iowa or overseas or whatever it may be, which would be cheaper for them. But they can’t. Well they could, but they wouldn’t.”
Obviously New Jersey Assemblyman John McKeon, D-Essex, does not know Jeffrey Sprecher and the ICE executive staff very well.