A group of stock exchanges and trading platforms have banded together to form an alliance to withhold the tax on retirement savings in response to a proposed financial transaction tax in New Jersey.
The coalition, which states that millions of Americans who invest in financial markets to save for retirement, will be hurt by this new tax, planning a test in the coming weeks to make sure they have a tax Exit ability. It is impossible for him to work in the Garden State.
“The idea, which was true for a long time before full electronic trading, was that you needed to be close,” a coalition spokesperson told Fox Business. “What this test will set up is, in fact, these data centers are quite portable. This is not something these companies want to do in any way, but they are concerned about the possibility of rising costs, and they have that Customers are concerned about the cost.
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A bill introduced in the New Jersey state legislature, supporting Governor Phil Murphy, would “tax individuals or entities that process 10,000 or more financial transactions through electronic infrastructure during the year in New Jersey.” The tax will work out of one quarter per transaction.
After billions of financial transactions per day, some estimates by the Legislature could collect $ 10 billion annually from taxes on stocks, options, futures, and swap trading done in New Jersey state’s electronic data centers.
Members of the alliance include the New York Stock Exchange, Nasdaq, Member Exchange, Cobbe Global Markets, Citadel Securities, Virtue Financial, TD Ameritrade and Equinix. New Jersey is home to many Wall Street server “farms”.
The first exam to move on from New Jersey will take place on Saturday 26 September. Coalition members were already planning a test for that weekend, but plans were recently expanded to test full functionality in light of New Jersey’s proposed financial transaction tax.
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“The scope of this weekend’s testing has expanded from connectivity-only testing to full feature testing of all Exchange functionality to ensure Kobe’s ability to safely move data center operations from Securus, NJ to Chicago, IL can do.” Cboe Global Marker told traders, “The exchange business was determined in Secuusus, NJ would give investors additional, unnecessary costs.” Cab, who owns the Chicago Board Options Exchange and stock exchange operator Bats Global Markets, declined to comment further for this story.
The New York Stock Exchange told traders on Friday that the test is to make sure they “leave New Jersey if adverse tax policies are implemented.”
Nasdaq told traders it would participate in the test to ensure it could exit New Jersey for “financial viability” if it needed to.
The Intercontinental Exchange, the parent company of the New York Stock Exchange, did not respond to a request for comment on Friday. Nasdaq did not respond to a request for comment in time for the publication of this story.
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Senator Bernie Sanders, I-VT, has introduced a Financial Transaction Tax (FTT) bill at the federal level, which he claims will generate $ 2.4 trillion in revenue over a decade.
A Tax Foundation report earlier this year found that a financial transaction tax (FTT) could be a substantial revenue source for governments, but would adversely affect financial markets and the economy.
The authors of the report wrote, “The burden of FTT will mainly fall on the rich, because the rich hold and most often have financial assets.” “However, all investors’ portfolio values will be reduced by a decrease in asset prices. An FTT will increase the cost of consumer goods, meaning that all taxpayers will be subject to tax indirectly.”
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