Today, Assemblymember Phil Steck (D-110^th AD) and Senator James Sanders Jr (D-10th SD) co-hosted a press conference in front of the New York StateStock Exchange with representatives from the Corporate Campaign, New York State Council of Churches, the New Economy Project, and other groups to call on New York State to reinstate the Stock Transfer Tax (a1494a/s1237).

Enacted in 1905, New York State’s stock transfer tax (STT) is a sales tax levied on stock trades. The STT taxes each sale of stock worth over $20 at 5 cents. While this small fee amounts to a tiny cost for investors on each transaction, the revenue gains for New York State would be tremendous. Some estimate the tax, if fully collected, could raise $14-16 billion annually in new revenue.

“The Stock Transfer Tax existed from 1905 to 1981. It raised billions for the State, yet Wall Street prospered. That is because the tax is so low at, on average, half a penny per dollar that it is inconsequential to the stock market, as economists and even investment bankers have noted,” said Assemblymember Phil Steck, the Assembly sponsor of the legislation who spoke at the press conference. "It's a sales tax paid mostly by people from other states and countries who buy stock in NY. To reinstate it, in the words of FDR, all we have to fear is fear itself.”

With the looming threat of reduced federal funding, it is more critical than ever for New York to explore sustainable revenue sources. Reinstating the Stock Transfer Tax would provide much-needed funding for essential programs, including the Metropolitan Transportation Authority (MTA), the New York City Housing Authority, the Consolidated Local Street and Highway Improvement Program (CHIPS), the State University of New York, and various healthcare programs.

“As public officials, our duty is to protect and serve the everyday New Yorker, not Wall Street billionaires. The average New Yorker isn’t trading millions in stocks every day, they’re riding the subway, raising families, and working hard just to make ends meet. Restoring the stock sales tax, just 5 cents on trades over $20, is a drop in the bucket for high-volume traders but a game-changer for our city,” said Senator James Sanders Jr, the Senate sponsor of the legislation. “It’s about fairness. It's about holding those who profit the most from this system accountable to give back just a little, so we can reinvest in the schools, housing, health care, and transit that make this city livable. Let’s stop giving rebates to the rich and start giving relief to the people who truly keep New York running.”

The reinstatement of the Stock Transfer Tax has garnered broad support, even from longtime consumer advocate Ralph Nader, who submitted a statement of support.

"As consumers, we all pay sales taxes on nearly every item we buy in order to pay for public services ranging from police and firefighters to schools, sanitation, healthcare, housing, transportation, and infrastructure. So why is the State rebating billions of dollars every year since 1981 collected from the sale of securities back to wealthy brokerage firms rather than applying those taxes to programs that promote social well-being for everyone?” asked Ralph Nader. “It's way overdue for the people of New York State to demand answers from their hired lawmakers in Albany."

At the press conference, Ray Rogers, the Director of the Corporate Campaign, joined Assemblymember Phil Steck in advocating for the reinstatement of the Stock Transfer Tax. He underscored how this legislation would benefit all New Yorkers.

“The bill to end the Stock Transfer Tax Rebate is the most important piece of legislation that could pass this year. It will advance the well-being of all New Yorkers for decades to come. Restoring the stock transfer tax would cost stock speculators a minuscule fraction of the egregious profits they realize from stock trading”, stated Ray Rogers. “At the same time, they would provide an estimated $13 to $17 billion annually for funding critical public services and infrastructure needs. Any organization, especially those labor unions representing public sector workers, who do not aggressively support the passage of this bill are doing their members and the general public a grave disservice. This is truly a battle of Greed vs Need that we must win to better the lives of all New Yorkers.