New Jersey Governor Phil Murphy said he is “very seriously” mulling a tax on high-volume trades.
“The notion is something we like a lot,” Murphy said on Monday, warning that litigation would be a near-certainty.
Legislation would charge 0.25 cents per trade, potentially raising billions of dollars. The tax would be on transactions made via north Jersey server farms.
Assemblyman John McKeon, a Democrat from West Orange, introduced the bill on July 16 and an identical version followed, sponsored by Senate President Steve Sweeney, a Democrat who is New Jersey’s highest-ranking state lawmaker. Neither version has had a committee hearing.
Murphy, a retired Goldman Sachs Group Inc. senior director, said he wouldn’t sign the legislation prior to the Oct. 1 fiscal-year start, because the likelihood of a legal challenge would make the tax impossible to count as a revenue source.
This article was provided by Bloomberg News.