Good day all. The various stock exchanges have been “living” in New York City and Chicago for literally centuries. Recently NASDAQ, formally known as the National Association of Securities Dealers Automated Quotations, contacted the governors office in Texas regarding moving their operations out of New York and New Jersey.
The reason for this is very simply. Costs. While NASDAQ’s main offices are in New York City, it’s data centers are in New Jersey. New Jersey is looking to tax all financial transactions that occur in the state, and since the data centers and some of the back offices are in New Jersey, they would have to pay the tax. Potentially, it wold cost the NASDAQ billions. Rather then get soaked by the tax fattened hyenas of the New Jersey state government, the NAADAQ is looking to move. Here are the details from The Dallas Morning News:
Texas Gov. Greg Abbott will welcome representatives from major stock exchanges, including Nasdaq, to Austin on Nov. 20 as the state makes a bid to be the top choice if the exchanges make good on threats to move their trading platforms out of New Jersey.
The Dallas Morning News reported last month that the governor’s office was in talks with Nasdaq and other exchanges about moving data centers to Dallas that power billions of dollars in trades each day on Wall Street. The governor’s office confirmed the meeting, touting the state’s business-friendly environment.
“Texas continues to be the premier economic destination in the country, attracting more leading businesses than any other state,” spokeswoman Renae Eze said in a statement to The News. “The governor looks forward to meeting with Nasdaq and showcasing Texas’ business-friendly environment, skilled workforce, robust infrastructure, and low taxes, all of which foster greater economic growth in the Lone Star State.”
On thing you can say about most of the North Eastern States is that business friendly they are not, especially New York, New Jersey and Connecticut. They see businesses as something they can loot with abandon, along with the high income employees of these companies.
Now that these states have run their economies into the ground, and their state budgets are imploding over the out of control Progressive Liberal spending, they are planning on jacking tax rates even higher. The upshot of making it touch on businesses to operate, or even survive? They are looking to pull out. Texas sees this as a way to get more jobs, and more revenue without killing the goose that lays the golden eggs.
The group meeting with Abbott calls itself the Coalition To Prevent the Taxing of Retirement Savings, according to two sources familiar with the discussions but not authorized to speak publicly. The coalition includes Nasdaq, CBOE Global Markets, Citadel Securities, data center operator Equinix, IEX, Members Exchange, New York Stock Exchange owner Intercontinental Exchange, TD Ameritrade Holding Corp., Virtu Financial and UBS.
I don’t know how many of these organizations have operations in New Jersey or other high tax states, but this has to be putting the fear of bankruptcy into the cold, black hearts of state treasurers.
The talks are being driven by a potential tax on financial transactions in New Jersey, where Nasdaq and other exchanges house the data systems that are behind Wall Street’s daily activity.
Under one legislative proposal, New Jersey would charge a quarter of a cent per “financial transaction” at entities processing at least 10,000 transactions annually via electronic infrastructure. That tax would generate an estimated $10 billion annually for the state.
That’s the problem with the Progressive Liberal Socialists running New Jersey and other Progressive Blue states. Most of them have never run a business and have no understanding of businesses costs. They just assume that the NASDAQ and any other financial entity that has operation in their state would just eat the costs. For $10 billion dollars? Their answer is going to be “See YA!” It will cost significantly less then that to move operations into Texas, even including transferring employees down there. (Just remember, leave you progressive ideas in New Jersey. Those ideas are why you are either moving or losing your jobs in the first place)
Now Texas isn’t the only state that’s looking to bring in the exchanges. The usual suspects, Virginia, North Carolina and Illinois, are also talking with the NASDAQ. However, I don’t see Illinois as having much of a chance since they’re in even worse straits then New Jersey financially, and Virginia has drunk deeply of the Progressive Kool-ade. Also, Texas’s energy grid is self contained and pretty reliable.
I would say that Texas has the best shot at pulling NASDAQ and the other exchanges out of the North East. If that happens, and the exchanges do pull out, all that tax revenue that New Jersey and New York thought they would be getting is going to fly away on yet another freedom bird from the Progressive North East. All I can say to that is, Sucks to be you. I hope you enjoyed your roast goose.
Thatisall
(3 votes, average: 5.00 out of 5)
Loading...
~The Angry Webmaster~
