FOX Business anchor Larry Kudrow reacts to a proposal to raise taxes on the NYSE, which could cause the company to leave New York State.
FOX Business host Larry Kudlow criticized New York on Wednesday for proposing a “false policy” that could cause the New York Stock Exchange to move to another state with better tax incentives.
During an appearance in America’s Newsroom, Kudlow explained that adding transaction or trading fees on the NYSE prevents investment, which will affect hedge funds, as well as retail investors, and raise prices for consumers.
Kudlow said that the presence of the Stock Exchange in New York creates several jobs for apartments, restaurants and small businesses.
“It’s not just the people who work directly there,” said Kudlow. “These are the indirect effects, it would be a very bad blow to the New York economy.”
Kudlow added that if the policy were implemented, the rising cost on the NYSE would likely cause them to pack up and leave for another city, like Chicago or Charlotte.
FOX BUSINESS DEVELOPES THE NEW LARRY KUDLOW PROGRAM THIS MONTH
In an opinion piece in the Wall Street Journal published yesterday by NYSE President Stacey Cunningham, she explained that the recently revived stock transfer tax, gaining support in New York, may force the company to find a new location.
“On Wednesday, with more than 25 other representatives from the New York securities industry, I sent a letter to state legislative leaders warning of the unintended consequences of imposing a transfer tax on stock sales,” wrote Cunningham. “The lesson of history is clear: if you try to extract more revenue from financial companies, the business will go elsewhere.”
Cunningham explained that many employees of Wall Street companies have moved out of the state and moved to places like Florida and Texas for more favorable tax policies.
DISCOVER FOX BUSINESS ON THE MOVE BY CLICKING HERE
In 1981, the state’s share transfer tax was lifted by state leaders, who offered investors a 100% discount. Cunningham said that with the paralyzing effects of COVID-19 on the economy and the historical consequences of trade taxes on capital markets, relocation may be the NYSE’s only option.