Governor of New Jersey. Phil Murphy plans to add more tax increases to help balance his state budget. Lure Ren Simonetti with Fox Business’ More.
The group of stock exchanges and trading platforms have teamed up to form an alliance to prevent retirement protection tax in response to the proposed financial transaction tax in New Jersey.
The Coalition, which argues that millions of Americans who invest in financial markets to save for retirement are hurt by this new tax, is holding tests next week to make sure New Jersey has the ability to exit if the tax builds. It is impossible for them to function in the Garden State.
“The idea, which was true for a long time before a full electronic trade took place, was that you needed proximity, you needed to be close,” a coalition spokesman told Fox Business. “What this test will establish is that, really, these data centers are fairly portable. This is not something that these companies want to do anyway, but they are concerned about the possibility of rising costs, and they also have customers that Is concerned.
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The bill, introduced in the New Jersey State Legislature, backed by Governor Phil Murphy, would impose a tax on individuals or companies processing 10,000 or more financial transactions through New Jersey-based electronic infrastructure during the year. The tax will work in a quarter per transaction.
With billions of dollars in daily financial transactions, according to some estimates from the legislature, New Jersey could collect ઉપર 10 billion annually from taxes on stocks, options, futures and exchange transactions made in electronic data centers.
Coalition members include the New York Stock Exchange, Nasdaq, Member Exchange, Cobo Global Markets, Citadel Securities, Vertu Financial, TD Ameritrade and Equinix. Many Wall Street servers in New Jersey have “farms.” Is home to.
The first test ahead of New Jersey will take place on Saturday, September 26th. Coalition members were already planning a test that week, but plans were recently expanded to test its full effectiveness in light of New Jersey’s proposed financial transaction tax.
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“In order to ensure Cobo’s ability to quickly transfer data center operations in a situation from Secaucus, NJ to Chicago, IL, the scope of testing this week has been expanded to full feature testing of all exchange functionality of connectivity-only tests.” If done, NJ will result in additional and unnecessary costs to investors, “Cebo told Global Markets traders. C Bo, owner of Chicago Board Options Exchange and stock exchange operator BATS Global Markets, declined to comment further on the story.
The New York Stock Exchange told traders on Friday that “this test has been carried out to ensure they can leave New Jersey if adverse tax policies are applied.”
Nasdaq told traders it would take part in the test to make sure it could exit New Jersey for “financial feasibility” if necessary.
The Intercontinental Exchange, the parent company of the New York Stock Exchange, did not respond to a request for comment Friday. Nasdaq did not respond to a request for comment in a timely manner.
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I-VT Senator Bernie Sanders has introduced the Financial Transaction Tax (FTT) bill at the federal level, which he claims will generate 4.4 trillion in revenue in a decade.
A report by the Tax Foundation earlier this year found that the Financial Transaction Tax (FTT) may be the only source of revenue for governments, but it has the opposite effect on financial markets and the economy.
The authors of the report wrote, “The burden of FTT falls primarily on the wealthy, as the wealthy seize and trade financial assets frequently.” “However, a reduction in property prices will reduce the portfolio values of all investors. FTT will increase the price of consumer goods, meaning that all taxpayers will be indirectly taxable.”
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