FOX Business anchor Larry Kudrow responds to a proposed tax increase on the NYSE that could allow the company to leave New York State.
FOX Business presenter Larry Kudlow hit New York on Wednesday for proposing a “ bogus policy ” that could cause the New York Stock Exchange to move to another state with better tax incentives.
During an appearance on America’s Newsroom, Kudlow explained that adding transaction or trade taxes to the NYSE will deter investment, which will affect hedge funds and private investors alike and increase prices for consumers.
Kudlow said the presence of the New York Stock Exchange creates numerous jobs for apartments, restaurants and small businesses.
“It’s not just the people who work directly there,” said Kudlow. “It’s the knock-on effects, it would be a real blow to the New York City economy.”
Kudlow added that if the policy were to be implemented, the higher costs on the NYSE would likely result in them packing their bags and moving to another city, such as Chicago or Charlotte.
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In a Wall Street Journal opinion piece published yesterday by NYSE president Stacey Cunningham, she explained that the newly revived tax on the transfer of shares in New York could force the company to find a new location.
“On Wednesday, along with more than 25 other representatives of the New York securities industry, I sent a letter to state legislatures warning of the unintended consequences of imposing a transfer tax on stock sales,” Cunningham wrote. “The lesson from history is clear: if you try to get more revenue from financial companies, the company will go elsewhere.”
Cunningham explained that many employees of Wall Street companies have left the state and moved to places like Florida and Texas for more favorable tax policies.
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In 1981, state property transfer tax was wiped out by state leaders, who offered investors a 100% rebate. Cunningham said that with COVID-19’s crippling effects on the economy and the historical impact of trade taxes on capital markets, relocation may be the NYSE’s only option.