250 Top Business Leaders Just Warned Cuomo: NY’s Tax Hike Proposals Will Have One Huge Consequence

Link: https://fee.org/articles/250-top-business-leaders-just-warned-cuomo-ny-s-tax-hike-proposals-will-have-one-huge-consequence/

Excerpt:

Thanks to the recently-passed $1.9 trillion spending package, the state of New York is set to receive a whopping $23.5 billion in federal bailout money. This is more than enough to make up for any revenue gaps incurred over the last year. But progressive lawmakers are nonetheless considering a slew of new business and personal taxes—prompting 250 top business leaders to pen an open letter this week warning that these punitive tax hikes could have drastic ramifications.

“Significant corporate and individual tax increases will make it far more difficult to restart the economic engine and reassemble the deep and diverse talent pool that makes New York the greatest city in the world,” wrote the leaders, whose ranks include the CEOs of JP Morgan Chase, Blackrock, and Goldman Sachs. “Many members of our workforce have resettled their families in other locations, generally with far lower taxes than New York, and the proposed tax increases will make it harder to get them to return.”

Author(s): Brad Polumbo

Publication Date: 24 March 2021

Publication Site: Foundation for Economic Education

Why the New York Stock Exchange Could Soon Flee the State

Link: https://fee.org/articles/why-the-new-york-stock-exchange-could-soon-flee-the-state/

Excerpt:

State lawmakers in Albany, New York are considering imposing a tax on financial transactions. If they go through with it, the iconic New York Stock Exchange might actually leave the Empire State.

The tax legislation in question was recently proposed by state Senator Julia Salazar and several of her Democratic colleagues. It would impose a 0.5 percent tax on stock trades and smaller taxes on bond and derivative trades. These levies may sound minor, but they add up when applied across millions of trades—and Salazar says the tax would raise $12-29 billion in revenue

…..

“The New York Stock Exchange belongs in New York,” NYSE President Stacey Cunningham writes in a new Wall Street Journal Op-Ed. “If Albany lawmakers get their way, however, the center of the global financial industry may need to find a new home.”

“Financial transaction taxes have a dismal track record,” she continued. “They never live up to the promises about how much revenue they’ll raise. They damage capital markets and destroy high-paying jobs.” 

Author(s): Brad Polumbo

Publication Date: 11 February 2021

Publication Site: Foundation for Economic Education

‘Terrible Idea’ with ‘Dismal Track Record’: Top Economists Blast Elizabeth Warren’s Latest Proposal

Link: https://fee.org/articles/terrible-idea-with-dismal-track-record-top-economists-blast-elizabeth-warren-s-latest-proposal/

Excerpt:

In fact, wealth taxes have failed across the world where they’ve been tried.

“Warren’s proposal has a dismal track record in other countries that have attempted wealth taxation,” Senior Research Fellow at the American Institute for Economic Research and economic historian Phil Magness warned. “It simply encourages the wealthy to relocate abroad, taking their businesses with them.”

Economists say that’s why the global trend has not been passing wealth taxes, but repealing them. Edwards pointed out that in 1990, 12 European countries had wealth taxes. Now? Just three still do. 

“Even most of the leftist welfare states in Europe have repealed their wealth taxes because of the complex administration, the negative impacts on growth, and the encouragement of avoidance and evasion,” Cato’s Edwards concurred. 

Author(s): Brad Polumbo

Publication Date: 4 February 2021

Publication Site: Foundation for Economic Education