Impact of Potential Stock Trade Tax

Should a tax being imposed on stock trades, this could create a huge impact on the entire New York Stock Exchange.  According to Stacey Cunningham, NYSE president:

NYSE president Stacey Cunningham warned on Tuesday that the unthinkable was possible, saying the hallowed financial institution on Wall Street could flee if the state imposes a tax on stock trades.

“While New York has remained a centre of gravity for the financial industry, many employees of ‘Wall Street’ firms are migrating to Florida, Texas and other states with hospitable tax policies. If lawmakers opt to reinstate th[e tax that was abolished in 1981 by the State of New York] at tax, the NYSE may need to follow the lead of those relocating firms. Some of our customers are already asking about our willingness to relocate.”

Still, it has not been put into effect yet and executives from the state governor’s office are expressing opposition to the measure. For example, Robert Mujica the Budget Director working for Cuomo said:

“The only nexus you have with the stock transfer tax is the idea that the transactions occur in the state because the computer servers happen to be here. Move the servers, you move the transaction, you don’t collect anything from the tax.”