Letters

Joint Letter on Opposition to Any Form of the Stock Transfer Tax

Summary

SIFMA and other organizations sent comments to NY State in opposition to re-imposing any form of a New York State Stock Transaction Tax (STT). Such a tax would damage New York’s position as a global financial capital, resulting in shrinkage of an industry that is the largest contributor to our economy and tax base.i Our organizations represent more than 544,000 workers in the financial services industry in New York State, those throughout the U.S., and other business groups in the state. While some see this as a tax on the securities industry itself, it is actually a tax on working families saving for retirement and college, pension funds that secure retirement for millions, as well as many individual investors, foundations and endowments.

See Also:

PDF

Submitted To

State of NY

Submitted By

Alternative & Direct Investment Securities Association
American Council of Life Insurers
American Retirement Association
American Securities Association
Bronx Chamber of Commerce
Brooklyn Chamber of Commerce
Business Council of New York State
Business Council of Westchester
Coalition to Prevent the Taxing of Retirement Savers
Council on State Taxation
Equity Markets Association
Financial Planning Association
Financial Services Institute
Foreign Exchange Professionals Association
Futures Industry Association – Principal Traders Group
Institute of International Bankers
Insured Retirement Institute
Investment Company Institute
Life Insurance Council of New York, Inc.
Long Island Association
Managed Funds Association
Manhattan Chamber of Commerce
Modern Markets Initiative
NASDAQ
New York Bankers Association
New York State Economic Development Council
New York Stock Exchange
Partnership for New York City
Securities Industry & Financial Markets Association
SPARK Institute
Staten Island Chamber of Commerce

Date

3

February

2021

Excerpt

February 3, 2021

The Honorable Carl E. Heastie
Speaker of the Assembly
State of New York
LOB 932
Albany, NY 12248

RE: Letter in Opposition to Any Form of the Stock Transfer Tax

Dear Speaker Heastie:

We write in opposition to re-imposing any form of a New York State Stock Transaction Tax (STT). Such a tax would damage New York’s position as a global financial capital, resulting in shrinkage of an industry that is the largest contributor to our economy and tax base.i Our organizations represent more than 544,000 workers in the financial services industry in New York State, those throughout the U.S., and other business groups in the state. While some see this as a tax on the securities industry itself, it is actually a tax on working families saving for retirement and college, pension funds that secure retirement for millions, as well as many individual investors, foundations and endowments.

New York State eliminated collection of a STT in 1981ii, in response to market globalization and significant technological changes affecting market transactions. During these unprecedented and critical times, a STT targeted at the financial markets will impair New York State’s economy, adversely impact the state’s business environment, and increase the cost of investing for everyday savers and investors. In 2003, when restoration of the tax was proposed, the NYC Independent Budget Office found that reinstating the tax at half the prior rate would increase transaction costs by 23%, eliminate nearly 60,000 private sector jobs, and reduce trading volume by 18%.iii