The New York Stock Exchange may leave New York State if Albany imposes a transfer tax on the stock sale, the president of the Intercontinental Exchange exchange operator said in an op-ed in the Wall Street Journal on Tuesday.
NYSE President Stacey Cunningham said she and 25 other representatives of the New York securities industry last Wednesday sent a letter to state legislatures warning of the unintended consequences of imposing such a tax, which would ultimately be affected by investors. being carried.
The New York Stock Exchange belongs in New York. However, if Albany lawmakers get their way, the center of the global financial sector may need to find a new home, ”she said.
A NYSE representative declined to comment further.
The state of New York is facing large budget deficits as a result of the COVID-19 pandemic, which has prompted some state legislatures to introduce a bill that would tax certain financial transactions.
The idea of a new transaction tax seems to have little support from the governor’s cabinet.
When the topic came up at a press conference in January, budget director Robert Mujica said many ideas about such taxes “have not materialized,” according to a copy of comments provided to Reuters by an official in New York State. Breakdown of the budget.
Mujica pointed to a financial tax proposed last year in New Jersey, where many exchanges host their servers, and noted that the exchanges were rapidly mobilized to temporarily move their employees and operations out of the state.
The pandemic has shown that people can do business anywhere, he said. “So if we increase the tax like that, you are mobilizing people, possibly moving your transactions and your servers to another part of the country where those taxes don’t exist.”