Paterson said reimposing the stock transfer tax would cause Wall Street firms to move to other cities, such as Newark, New Jersey, or Greenwich, Connecticut, according to news reports. The governor, facing a state budget shortfall of $9 billion, was responding to a New York City Council member who made the proposal at a town hall meeting on the budget.
According to Bloomberg, in February, a coalition of labor and other groups also called for the state to avoid spending cuts by keeping 20% of the stock transfer. New York has rebated 100% of the stock transfer tax since 1981, the news report said.
Paterson said he seeks a tax on sugar-sweetened beverages to help close the budget gap. An announcement on his Web site says he is on his way to Albany where he will deliver remarks at the Sugared Beverage Tax Symposium this afternoon.