New York Democrats Want To Tax Stock Trades As State Revenues Plummet

[Actuarial_Fun]

1) Sig, you're the best.
2) Why don't you guys realize that we have a 1 party system and both have been bought off by banks and wall street? Did you see that the people got absolutely nothing from the coronavirus, yet the market is near all-time highs? Don't worry....nothing will happen, Biden is in the back blowing a wall street guy right now, just like Trump did 15 minutes ago.

 

[Sig]

it would be like taxing on the horsetrack or casino.
it would make high frequency trading unfeasible.
they proposed it in 2009
if retail commissions were like in the 70's daytrading is not feasible.
the reason for the low commissions is the business model has changed, it's high volume and gambling that keeps the industry afloat. or pay for the $100,000 porches etc.
volume was very low in the 80's and sleepy industry
the QQQ or ETF industry didn't exist in the 80's and many of the ETF is from retail 'traders'

the QQQ ETF or NQ didn't exist before 1999 and CME was mainly commodity trading. if the tax it wipe out an entire trading industry. people wold lose their jobs and gov't won't get any tax.

if gov't wants to make more money from the 'financial industry' it would be higher capital gains taxes or taxing trading profits as income tax. and tax more on profits. not on trading activity.

there are people in the hedge fund industry with offshore accounts making billions tax free on capital gains. taxing profits is more fair. and makes sense. Trump and his cronie would be against increasing capital gains or cracking down on loopholes where some investors dont pay a dime on profits or capital gains.

Pretty sure we tax racetracks and casinos. Heavily. They seem to still be doing just fine, at least those that aren't owned by Trump. The tax itself, given that it's not massive, isn't going to stop anything. As someone pointed out, if the tax simply added up to what commissions were a year ago we'd be back to last year's environment and we'd all be just fine. The stupidity of the idea is in doing it in anything other than a universal fashion in order to prevent everyone from just leaving your tax base and moving to different products or a different place. Since that's almost impossible to do, it's generally a dumb idea.

BTW, U.S. citizens don't make billions tax free with offshore accounts, at least not legally, anywhere but Puerto Rico and the USVI. It certainly makes sense to set up your hedge fund in a tax free jurisdiction depending on the non-profit status of your LPs, but that conveys no tax benefit on you as the hedge fund GP. Any profits you make as a U.S. citizen are taxable regardless of where they're earned (except again for the Puerto Rico and USVI exceptions), so there's no tax benefit to the hedge fund managers personally to setting up offshore accounts.

 

[listedguru]

https://www.zerohedge.com/markets/new-york-democrats-want-tax-stock-trades-state-revenues-plummet

Looks like NJ want to get it on this FTT action as well albeit with a different twist:

https://www.napa-net.org/news-info/...oks-financial-transaction-tax-fix-budget-woes

"Unlike other financial transaction tax (FTT) proposals, however, this bill takes a slightly different approach. Introduced July 9 by Assemblyman John McKeon (D-Essex), the bill (A4402) would impose a tax on high-quantity processors of financial transactions at $0.0025 per transaction."

"High-quantity processors would be defined as persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the year. McKeon notes that there are reportedly billions of financial transactions processed daily, many of which are processed in New Jersey."

Also here's a link to the bill mentioned in the zerohedge piece about the New York Stock Transfer Tax.

https://www.corporatecrimereporter....r-tax-and-moving-the-computers-to-new-jersey/

In the piece it sounds like they would have no problem with New York state collecting the tax along with a seperate FTT being levied at the Federal Level.

Does the passage of your bill set a precedent for a federal stock transfer tax?

“I don’t know where the federal government is headed politically.”

You would favor such federal legislation.

“Yes. But New York needs to have its own tax. This all plays into the whole tax structure of the country.

“Most of the people who trade on Wall Street aren’t from New York or the United States. It offsets that outflow of tax money that is a real problem for the state of New York. If the federal government also imposes a stock transfer tax later on, what the appropriate percentage for the states or the federal government could be addressed at that time.”

The good news is that it sounds like Cuomo has been fully against the New York Stock Transfer Tax and will hopefully continue to be. I know that Biden mentioned that we probably should have a FTT in an interview with CNBC earlier this year but hopefully that's just pandering for votes. I think when it comes right down to it the FTT would have a very difficult time passing even a democrat controlled Senate. Can you imagine a New York Stock Transfer Tax and a federal FTT? Trading (and volume) would cease to exist as would the Dem's hopes for raising any revenue from said taxes.

Just my opinion,

-Guru

 

[Same Lazy Element]

High-quantity processors would be defined as persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the year.

That actually is a smart approach - moving matching engines with all of the colocated infrastructure is gonna be nearly impossible and people would just have to eat the tax. It's gonna create some bizarre routing incentives too :|

 

[murray t turtle]

New York might be surprised to find out how many stock transactions are actually taking place in data centers in New Jersey.

%%
LOL, that;
+ how many left for FLA + low tax states/vote with feet