New Jersey Gov. Phil Murphy is planning to add more tax hikes to help balance his state’s budget. FOX Business’ Lauren Simonetti with more.
A group of stock exchanges and trading platforms have banded together to create the Coalition to Prevent the Taxing of Retirement Savings in reaction to a proposed financial transactions tax in New Jersey.
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The coalition, which contends that millions of Americans who invest in financial markets to save for retirement would be hurt by this new tax, is planning tests in the coming weeks to ensure that they have the ability to move out of New Jersey if the tax makes it impossible for them to operate in the Garden State.
“There’s this idea, which was true for a long time before there was full electronic trading, that you needed proximity, you needed to be close,” a spokesperson for the coalition told FOX Business. “What this test will be establishing is that, actually, these data centers are quite portable. This isn’t something that these companies want to do, by any means, but they’re concerned about the possibility of rising costs, and they have customers who are concerned about costs as well.
A bill introduced into the New Jersey state legislature, which has the support of Governor Phil Murphy, would impose a “tax on persons or entities that process 10,000 or more financial transactions through electronic infrastructure located in New Jersey during the year.” The tax would work out to a quarter of a cent per transaction.
With billions of financial transactions processed daily, some projections from the legislature estimate New Jersey could collect $10 billion annually from the tax on stocks, options, futures and swaps trading made in the state’s electronic