Vogon Today

Selected News from the Galaxy

Economic Scenarios

THE NEW JERSEY WANTS TO TAX TRANSACTIONS, THE BAG GOES AWAY. So now you will understand what will happen with the Commission’s Financial Transaction Tax

The saga about the financial transaction tax that New Jersey wants to impose to rearrange its finances continues, but with a nasty surprise for lawmakers. The Mahwah, New Jersey-based New Jersey Stock Exchange of New York has notified the New Jersey House of Representatives that it is ready to move operations out of state if they impose a new tax on exchanges that take place on their server, as reported. by Bloomberg .

To show that the NYSE is serious, Hope Jarkowski, co-head of government affairs for the parent company of NYSE Intercontinental Exchange Inc., said in late September that the world's largest exchange by market capitalization conducted a test. "For wholesale financial transactions normally conducted in New Jersey" noting that "from September 28 to October 2, we moved our servers for our NYSE Chicago stock exchange from New Jersey to our secondary data center." A test for the preparation of a permanent move. "Proximity to New York City is no longer relevant in today's business environment."

All this controversy arose when New Jersey lawmakers announced they would charge a one-cent fee for each exchange, up from a previous quarter-cent withdrawal proposal. The commission, which is expected to start on January 1 and last two years if exceeded, would be paid by "large-volume financial security processors" or companies that collect and store data. this is because the exchanges of the NYYSE, the Nasdaq and the CME are all carried out in the server farms of Mahwah, Secaucus and Carteret, all offices located in New Jersey due to the proximity to Wall Street, but the technological evolution makes the space factor not very influential for which the stock exchange companies can move the money elsewhere. New Jersey expected to collect 500 million a year from this tax, but is likely to see that figure drop to zero.

To finance the Recovery Fund, the commission plans to impose a financial transaction tax. The Commission also expects to collect hundreds of millions of euros, but the result is likely to be the same as that of New Jersey: the proceeds will be reduced to zero or almost zero.


Telegram
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Register now


The article THE NEW JERSEY WANTS TO TAX TRANSACTIONS, THE BAG GOES AWAY. So now you will understand what will happen with the Commission Financial Transaction Tax comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-new-jersey-uole-tassare-le-transazioni-la-borsa-se-ne-va-cosi-ora-capirete-cosa-succedera-con-la-imposta-sulle-transazioni-finanziare-della-commissione/ on Tue, 20 Oct 2020 06:00:35 +0000.