Would Financial Transaction Tax Drive Jobs and Tax
Revenue From New York?
And earlier this week, the sexist liberal at a liberal conference for liberal 2020 presidential contenders, a liberally pretentiously named We the People Summit, proposed a financial transactions tax as her means to address income inequality.Her proposal, were her colleagues in congress insane enough to ever pass it, “would help to further expand New York’s ‘income inequality’ with the federal government, ship jobs out of state and send more hard-earned tax dollars to Washington,” said her opponent for Senate, the Republican, Chele Farley.
In May, Alliance Bernstein Holding LP, one of Wall Street’s oldest firms, announced plans to relocate its headquarters, including over 1,000 employees, from New York to Nashville, Tenn., in an effort to cut costs – including the high taxes of the state.
As reported in Bloomberg, “last year, relocations contributed to the first decline in New York City’s securities workforce since 2013.“
In announcing the move, Bernstein CEO Seth Bernstein, cited Tennessee’s lack of income tax as an important consideration, especially since tax law revisions curtailed individual filer’s ability to deduct what they pay at the state and local level.
“Isn’t $48 billion enough? New York already has the highest tax burden in America, only made worse by the recent cap on state and local tax deductions in the federal tax bill. A financial transactions tax would tip the scales,” said Farley.
New York’s budget is balanced by revenues from a relatively small number of top earners. Last fiscal year, the securities industry accounted for 18 percent of State tax revenues and 6 percent of City tax revenues.
Increasing tax burdens, coupled with crumbling infrastructure, poor transit systems, declining services, and crappy weather, and crappier representation in the US Senate might help push New York into an economic death spiral.