NAIFA-NJ is fighting two bills that establish a tax on high quantity processors of financial transactions, S-2902, and A-4402. NAIFA’s opposition is strengthened by coalition partners that consist of other trade associations representing 200,000 workers in the financial services industry in New Jersey, throughout the U.S., and other business groups in the state. On October 6, the coalition sent a letter to John McKeon, Chairman of the General Assembly, and Senate President Stephen Sweeney. The letter encouraged the lawmakers to consider the following as they debate moving forward with the legislation:
- Effect on investors
- Revenue decline
- Unsuccessful experience with a financial transaction tax in countries in Europe, including Sweden and France
- Several constitutional limitations that may apply to the tax
"The tax proposed by S-2902/A-4402 would significantly increase the costs of executing trades in New Jersey,” the letter stated. “In the immediate short-term, these costs would be passed on to many New Jersey residents, including middle-class pensioners. Longer-term, concerns about best execution requirements would force most securities firms to execute future trades on non-New Jersey exchanges. If enacted, the legislation is far more likely to harm New Jersey savers and investors and the state’s overall economy than to raise significant revenue.”
The other associations that signed onto the letter include:
- American Council of Life Insurers (ACLI)
- Alternative & Direct Investment Securities Association (ADISA)
- American Securities Association (ASA)
- Center for Capital Markets Competitiveness – U.S. Chamber of Commerce
- Consumer Bankers Association (CBA)
- Commerce and Industry Association of New Jersey (CIANJ)
- Equity Markets Association
- Financial Services Forum (FSF)
- Financial Services Institute, Inc. (FSI)
- Futures Industry Association (FIA)
- Futures Industry Association – Principal Traders Group (FSI PTG)
- Financial Planning Association (FPA)
- Foreign Exchange Professionals Association (FXPA)
- Investment Company Institute (ICI)
- Institute of International Bankers (IIB)
- Insured Retirement Institute (IRI)
- International Swaps and Derivatives Association (ISDA)
- Managed Funds Association
- Modern Markets Initiative (MMI)
- NAIFA New Jersey
- New Jersey Business & Industry Association (NJBIA)
- New Jersey Chamber of Commerce
- Securities Industry and Financial Markets Association (SIFMA)
- Securities Industry and Financial Markets Association – Asset Management Group (SIFMA AMG)
- The SPARK Institute, Inc.
- TechNet
