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Assembly hearing on financial transaction tax set for Monday as Democrats refine proposal

Assembly hearing on financial transaction tax set for Monday as Democrats refine proposal


New Jersey Assemblyman John McKeon, D-Madison, introduced the bill in July.

New Jersey Assemblyman John McKeon, D-Madison, introduced the bill in July. | (AP Photo/Julio Cortez)

An Assembly committee plans to discuss a major and controversial bill next week that would impose a tax on electronic stock trades processed in New Jersey, potentially generating billions of dollars in revenue for the state.

Monday’s hearing by the Assembly Financial Institutions and Insurance Committee comes as several stock exchanges have threatened to move their data centers in North and Central Jersey out of state if the Legislature and governor move forward with the tax.

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The bill, which Assembly Democratic spokesperson Kevin McArdle said the committee will discuss but not vote on, is expected to be heavily amended before any vote, and will likely include changing the tax rate on transactions and making the tax temporary.

The original bill, NJ A4402 (20R), which Assemblyman John McKeon (D-Essex) introduced in July, would impose a quarter-cent tax on every financial transaction processed in New Jersey.

Democrats have hired Paul Hastings LLP, a Washington, D.C.-based law firm with expertise on the topic, to help design the proposal. An invoice from the firm shows it’s charged Senate Democrats $30,000 so far.

Background: New Jersey’s economic slowdown from the coronavirus pandemic has cratered some revenue sources, resulting in the state agreeing to borrow billions to fund the current budget.

Financial transaction taxes are nothing new, but the idea to apply them to New Jersey’s vast server farms was first proposed by the late congressional candidate David Applefield in an op-ed earlier this year. McKeon, who read the op-ed, introduced the bill the day after Applefield died.

The bill has since gained traction, with Gov. Phil Murphy and legislative leaders all indicating support for taxing electronic trades.

Impact: Monday’s hearing is the latest indication Democrats are serious about the

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Analysis: Biden’s first step on taxes may be cracking down on cheats, Democrats say

Analysis: Biden’s first step on taxes may be cracking down on cheats, Democrats say

WASHINGTON (Reuters) – Joe Biden will reverse Republican tax cuts for the wealthy and corporations on “day one” if he wins November’s election, his Democratic running mate, Senator Kamala Harris, vowed during Wednesday night’s vice-presidential debate.

U.S. Democratic presidential candidate Joe Biden departs Phoenix, Arizona, U.S., October 9, 2020. REUTERS/Kevin Lamarque

Other Democrats in Washington, however, say that timing looks overly ambitious. A new Biden administration, which would be inaugurated on Jan. 20, 2021, would likely face a still-raging coronavirus pandemic and an economy deep in recession.

His first step on taxes could be a more straightforward one, say some Democrats, including Biden advisers: beefing up Internal Revenue Service (IRS) enforcement to go after wealthy tax cheats who cost the United States hundreds of billions of dollars in revenue every year.

Tackling major tax reform, and particularly repealing the 2017 Tax Cuts and Jobs act, a signature Trump policy that reduced corporate taxes, depends on multiple factors, said Jared Bernstein, Biden’s chief economist as vice president, who now serves as an external adviser to his campaign.

“I don’t think there’s any way to zero in on the timing at this point,” he said in an interview days before the vice presidential debate. “There’s a lot that has to be dealt with between now and then, including winning,” said Bernstein.

He and other prominent Democrats, however, are happy to talk in detail about what they say is a need for much stronger enforcement at the IRS, which has suffered a decade of budget cuts and hiring freezes imposed by Republicans in Congress.

Bernstein said Biden would seek “significant increases in IRS enforcement and auditing, particularly for those with complex business structures” like Trump.

Senator Maggie Hassan, a senior Democrat on the tax-writing Senate Finance Committee, said at a subcommittee hearing on

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Biden’s first step on taxes may be cracking down on cheats, Democrats say

Biden’s first step on taxes may be cracking down on cheats, Democrats say

By David Lawder

WASHINGTON (Reuters) – Joe Biden will reverse Republican tax cuts for the wealthy and corporations on “day one” if he wins November’s election, his Democratic running mate, Senator Kamala Harris, vowed during Wednesday night’s vice-presidential debate.

Other Democrats in Washington, however, say that timing looks overly ambitious. A new Biden administration, which would be inaugurated on Jan. 20, 2021, would likely face a still-raging coronavirus pandemic and an economy deep in recession.

His first step on taxes could be a more straightforward one, say some Democrats, including Biden advisers: beefing up Internal Revenue Service (IRS) enforcement to go after wealthy tax cheats who cost the United States hundreds of billions of dollars in revenue every year.

Tackling major tax reform, and particularly repealing the 2017 Tax Cuts and Jobs act, a signature Trump policy that reduced corporate taxes, depends on multiple factors, said Jared Bernstein, Biden’s chief economist as vice president, who now serves as an external adviser to his campaign.

“I don’t think there’s any way to zero in on the timing at this point,” he said in an interview days before the vice presidential debate. “There’s a lot that has to be dealt with between now and then, including winning,” said Bernstein.

He and other prominent Democrats, however, are happy to talk in detail about what they say is a need for much stronger enforcement at the IRS, which has suffered a decade of budget cuts and hiring freezes imposed by Republicans in Congress.

Bernstein said Biden would seek “significant increases in IRS enforcement and auditing, particularly for those with complex business structures” like Trump.

Senator Maggie Hassan, a senior Democrat on the tax-writing Senate Finance Committee, said at a subcommittee hearing on Wednesday that her top fiscal priority was new coronavirus aid to households

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A Significant Majority Of Democrats And Republicans Support Strong Consumer Protection Regulations And Tougher Rules For Wall Street

A Significant Majority Of Democrats And Republicans Support Strong Consumer Protection Regulations And Tougher Rules For Wall Street

It has been ten years since the Wall Street Reform and Consumer Protection Act (Dodd-Frank) was signed. Given the complex nature of rule writing and the fact that fifteen regulators were involved, not all rules were finalized or implemented. Since Trump came into power, many of the rules that were finalized have been tailored and watered down. Yet, in the vast majority of both Democratic and Republican voters want strong consumer financial protections and tough regulation of the financial services industry.

Yesterday, in an Americans for Financial Reform and  Center for Responsible Lending sponsored-event, Lake Research Partners presented polling data, which shows that when in comes to a desire for tougher regulations for Wall Street, the word bipartisanship still exists.

Lake Research Partners’ key findings were:

·      Over nine in ten voters (91%) say it is important to regulate financial services and products to ensure they are fair to consumers, including 68% who say it is very important.

·      Nearly three-quarters of voters (74%) believe that Wall Street financial companies should be held accountable with tougher rules and enforcement, while only one in ten (10%) believe that their practices have changed enough that they don’t need further regulation.

·      More than half of voters feel that Wall Street and big corporations have gotten too much help from the government in response to the COVID-19 crisis (56%), while less than one in ten (8%) believe that they did not get enough help. Less than a quarter (23%) of voters feel that Wall Street received about the right about of aid.

·      Three-quarters (75%) of voters also believe there should be more government regulation of financial companies, such as Wall Street banks, mortgage lenders, payday lenders, debt collectors,

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