Texas Gov. Greg Abbott will on Nov. 20 host representatives from major U.S. stock exchanges considering whether to relocate their data centers from New Jersey to the Lone Star State amid the threat of higher taxes.
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The Coalition to Prevent the Taxing of Retirement Savings, consisting of exchange operators and trading platforms including New York Stock Exchange owner Intercontinental Exchange and Nasdaq, are exploring their options as New Jersey Gov. Phil Murphy weighs a proposed 0.25% tax per financial transaction on firms that process at least 10,000 electronic trades each year.
Housing data warehouses in New Jersey give financial firms no advantage other than being just a stone’s throw away from Wall Street.
"Texas continues to be the premier economic destination in the country, attracting more leading businesses than any other state," a spokesperson for Abbott's office told FOX Business. "The Governor looks forward to meeting with Nasdaq and showcasing Texas’ business-friendly environment, skilled workforce, robust infrastructure, and low taxes, all of which foster greater economic growth in the Lone Star State.”
The New York Stock Exchange declined to comment and the Nasdaq did not immediately responded to FOX Business’ request for comment.
New Jersey’s proposed financial transaction tax, would be levied against stocks, options, futures and swaps, could generate up to $10 billion per year and plug the state’s projected annual budget deficit.
Both the NYSE and the Nasdaq have already successfully tested running their data centers from locations outside of New Jersey in the event they are forced to relocate.
Texas’ business-friendly environment has enticed a number of corporations seeking to flee high-tax states.
Companies that have recently relocated to Texas include Charles Schwab, AT&T and McKesson. Tesla CEO Elon Musk announced in July that the company’s next Gigafactory would be built in Austin, which could also become the corporate headquarters.