Sunshine Sentinel

Rep. Byron Donalds (R-Fla.) is calling on the New York Stock Exchange to relocate to Florida amid proposals by New York legislators to tax stock trades.

“We have a lot of nice land here in Southwest Florida. We can find a place for them right here in the heart of my congressional district,” Donalds told NTD in a Feb. 16 interview, The Epoch Times reported. 

Due to the state's budgetary shortfall, New York legislators have introduced a bill to amend the law to tax transfers of stocks, bonds, and derivatives. The transfer tax, first imposed in 1905 was totally removed in 1981 via rebate. It taxes stocks being traded based on the dollar value of the stock. Donalds expressed his disapproval over the proposed bill.

“With our current technology, securities are traded all over the world. They’re traded all over America. So if I’m trading stocks in Florida, that means they’re going to be taxed in New York,” Donalds said, as reported by The Epoch Times. “No, that’s not appropriate.”

NYSE President Stacey Cunningham has since issued a warning that they might move from New York.

“While New York has remained a center of gravity for the financial industry, many employees of ‘Wall Street’ firms are migrating to Florida, Texas, and other states with hospitable tax policies. New York’s leaders did the right thing in 1981 when they made the state’s stock-transfer tax dormant through a 100 [percent] rebate,” she wrote, The Epoch Times reported.

“If lawmakers opt to reinstate that tax, the NYSE may need to follow the lead of those relocating firms. Some of our customers are already asking about our willingness to relocate.”

Donalds bemoaned New York restraints that are pushing businesses away. 

“New York, my former home state, has gone the complete opposite direction,” he said, The Epoch Times reported. “That’s why business owners are fleeing.”

Meanwhile, Florida's Chief Financial Officer Jimmy Patronis has written a letter to Cunningham, outlining the benefits of moving to their state.

“The Exchange’s parent company, Intercontinental Exchange, Inc., could realize a significant savings on corporate income taxes since Florida’s 4.4 percent corporate income tax rate is nearly one-third lower than the New York Corporate Income Tax rate of 6.5 percent,” Patronis wrote, according to a copy of the letter obtained by WCTV, The Epoch Times reported. 

Adding, “crucially for The Exchange, Florida repealed its intangible tax on the market value of stocks, bonds, and other financial instruments in 2007. The tax repeal also eliminated intangible taxes on mutual funds, bonds, and more.”

Gov. Andrew Cuomo and his administration have made it clear it may not support the bill. Calls have been made by the Citizens Budget Commission for the New York lawmakers to find other means of improving the economy other than reviving the old tax. They recommended a reduction in local aid and development projects among other things.