FOX Business anchor Larry Kudrow is responding to a proposed tax increase on the NYSE, which could cause the company to leave New York State.
FOX Business host Larry Kudlow slammed New York on Wednesday for proposing a “fraudulent policy” that could cause the New York Stock Exchange to move to another state with better tax incentives.
During ‘America’s Newsroom’, Kudlow explained that the addition of transaction or trade tax would deter the NYSE investment, which would affect hedge funds as well as retail investors and increase consumer prices.
Kudlow said the presence of the New York Stock Exchange creates numerous jobs for apartments, restaurants and small businesses.
“It’s not just the people who work directly there,” Kudlow said. “That’s the effect it’s having. It’s going to be a bad blow to the New York City economy.”
Kudlow added that if the policy is implemented, the increased costs on the NYSE will likely cause them to pack up and move to another city, such as Chicago or Charlotte.
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In a Wall Street Journal report published yesterday by Stacey Cunningham, the president of the NYSE, she explained that the newly revived tax transfer in New York could force the business to find a new place.
“On Wednesday, I, along with more than 25 other representatives of the securities industry in New York, sent a letter to state legislators warning of the unintended consequences of imposing a transfer tax on stock sales,” Cunningham wrote. “The lesson of history is clear: if you try to lose more revenue from financial businesses, the business will go elsewhere.”
Cunningham explained that many employees of Wall Street businesses have moved out of the state and moved to places like Florida and Texas for more favorable tax policies.
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In 1981, the state’s tax on share transfers was wiped out by state leaders, who offered a 100% discount to investors. Cunningham said that, given the crippling effects of COVID-19 on the economy, and the historic effects of trade taxes on capital markets, the move to the NYSE may be the only option.