The New York City Stock Transfer Tax

The New York City Stock Transfer Tax

The New York City Stock Transfer Tax
There has been a large debate regarding the stock tax, which has been proposed for the New York City Stock exchange. Although there is a stock tax currently imposed, the taxes have been given back to taxpayers in rebate form, for almost thirty years. 
In fact, that stock tax rebate is refunded one hundred percent. Many argue for the state to keep at least a portion of the tax, to help with the states major budget shortfalls. However, some stock transfer agents argue that the stock tax would discourage individuals from utilizing the stock exchange to make investments.
While stock transfer agents will admit that the stock tax is still in effect, they also point to the fact that the tax has been refunded in its entirety since 1981. To implement such a drastic change in the stock market, would cause more investors to sell what stocks they have left. In fact, the difficult economy has already led many investors to leave wall street, in search of safer investment strategies. 
 Stock transfer agents argue against the stock tax, even though it is the buyers tax burden, not the burden of the brokers. Many investors are focused on saving every dollar they can, and the stock tax may frighten away savvy investors. If investors were to avoid the New York Stock Exchange, there would eventually be a drastic lose in jobs, both on Wall Street and in supportive services.
Conversely, there are stock transfer agents that are in favor of the tax, because if could help to eliminate the major deficit in New York City and in the state. The amount of stock tax, would depend on the amount of shares purchases, regardless of the dollar value of the stocks. The taxes would be imposed on anyone buying stocks on the New York stock exchange, regardless of where they reside. 
That means that stock brokers in every country, that sell stock on the New York Stock exchange, would be forced to impose the tax on anyone that buys that stock. Absolutely any stock listed on the New York Stock Exchange,would be subjected to the stock tax. The amount of stock tax is relatively low, but trades taking place daily, would produce copious amounts of tax revenue based on volume alone.
Stock transfer agents, in concurrence with many investors, vigorously argue against a halt on stock tax rebates. They believe that the tax would discourage investors from utilizing the New York Stock exchange. However, some stock transfer agents are in favor of the tax, as it is relatively small, even when compared to other stock taxes, in practice around the world. That small tax, could mean big money for the enormous budget short fall now being experienced.




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