Lt. Gov. Delgado supports stock transfer tax to reinvest in Black and Brown communities
Last month, Lt. Gov. Antonio Delgado publicly threw his weight behind repealing the stock transfer tax rebate to stop the state from returning tens of billions in tax money back to Wall Street annually. Proponents see the move as an opportunity to deepen the state’s pockets to fund programs and services ranging from NYCHA housing to green energy. All by collecting on an already existing tax.
“For decades, Wall Street has made billions off New Yorkers — and paid nothing in stock transfer taxes,” tweeted Delgado on Dec. 23. “It’s time to collect the revenue already on the books and invest it back into our schools, transit, and communities. Let’s make the ultra-wealthy pay what they owe.”
New York’s stock transfer tax dates back to 1905 and remained in full effect until 1977 when then-Gov. Hugh Carey passed the bill to establish the rebate. For the next few years, the state returned a percentage back to Wall Street. By Oct. 1981, the entire tax was rebated back although “complex” laws prevented a full repeal. Still, the stock transfer tax is now ostensibly dormant.
In theory, everyone pays the same each time they sell their stock in New York: a few cents to the dollar. The movement’s supporters argue the impact on everyday investors will be nominal. Instead, the tens of billions in potential state revenue overwhelmingly stem from taxing “high-frequency” traders and speculators. They often rely on automation and algorithms to move high volumes of stock within milliseconds. So even a few cents a transaction would add up to tens of billions at the fiscal year’s end.
Other stock exchanges like Hong Kong and London already levy and collect on a similar tax. Additionally, non-resident investors would still be subject to pay. High-frequency traders cannot escape a stock transfer tax simply by moving out of the state, or even the country. Instead, they can only threaten to form or bolster another stock exchange.
Recently, assembly member Phil Steck championed repealing the rebate to offset federal budget cuts from the Trump administration. His bill continues growing in support from Albany, adding on Assembly Majority Leader Crystal Peoples-Stokes as a co-sponsor last year. Queens lawmaker James Sanders Jr. sponsors the state senate’s version of the bill. Beyond Albany, key proponents in the movement include former presidential candidate Ralph Nader and labor organizer Ray Rogers.
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