BALCONY Business Co-Chair Says Bring Back Stock Transfer Tax

NEW YORK, NY (05/19/2010)(readMedia)-- Bruce Ventimiglia, co-chair of BALCONY (www.balconynewyork.com) and chairman and president of Saratoga Capital Management, LLC (www.saratogacap.com), an asset allocation company based in Garden City, New York, today (Wednesday) called for the return of the stock transfer tax as a way to bring an estimated $3 billion into the New York State coffers. The stock transfer tax is already in place in New York State however it is currently rebated in full. Mr. Ventimiglia asserts that were the rebate reduced by a mere 20%, or less than a penny a transaction, New York State would collect enough funds to cover nearly a third of New York State's enormous budget deficit.

Mr. Ventimiglia stresses that this "non-punitive, common sense temporary revenue enhancer" is the right option for both New York State and Wall Street, emphasizing that it would help save vital services now on the chopping block while still providing a "sound operating environment for the world's financial capital."

BALCONY, the Business and Labor Coalition of New York, represents more than 1,000 New York businesses, labor unions, and trade associations. BALCONY seeks common ground in the public policy debate in New York to spur economic development through the adoption of business/union friendly, socially responsible common sense laws that maintain and improve the quality of life for working New Yorkers.

Mr. Ventimiglia has over 25 years of experience in the financial services industry. Prior to forming Saratoga Capital Management, LLC, Mr. Ventimiglia was a Senior Vice President of Prudential Securities Incorporated. He was also a member of the firm's Operating Council (one of the firm's three governing bodies) and the Service Advisory Council. The following is Mr. Ventimiglia's official statement.

TEMPORARILY UTILIZE THE STOCK TRANSFER TAX A GOOD SOLUTION FOR ONE-THIRD OF NEW YORK'S BUDGET DEFICIT

By Bruce Ventimiglia, Co-Chair BALCONY, chairman and president of Saratoga Capital Management, LLC, an asset allocation company (www.saratogacap.com)

New York State is facing a financial crisis the likes of which it has never seen. In addition to facing a $9.2 billion budget deficit, this year will mark the first time ever that the state's general fund will operate in the red in May and June. The provision of vital state services is in jeopardy. For example, repair and renovation of New York's bridges and roads has largely come to a halt putting thousands of jobs and New Yorkers' safety at risk. In addition, huge cuts to education, health care, and human services are being considered. Furthermore, at a time when our fellow New Yorkers are already choking on their taxes, new taxes on soda, mortgages and vehicles are being proposed.

BALCONY, the Business and Labor Coalition of New York, endorses temporarily reducing New York's stock transfer tax rebate from a 100% rebate to an 80% rebate to help ensure that New York can continue to provide essential state services. In addition, we call on our elected officials in Albany and throughout the state to make responsible choices as they realign our state's budget.

The stock transfer tax is essentially a sales tax on the transfer of shares of stock. The tax has been in effect since 1905, however the money collected from the tax is currently collected and then rebated in full. The tax was fully collected until 1979 when it became rebated at 30% - the rebate was raised to 60% in 1980 and to 100% in 1981. The stock transfer tax was a national tax between 1914 and 1966. In fact, many foreign stock exchanges have a transfer tax in place, often at considerably higher rates. London, Hong Kong, France, Germany, Switzerland and others have such a tax, all at higher rates than what is being proposed here.

The money collected by the tax before rebates in the 2010 fiscal year alone was $14.5 billion. If just 20% of that was not rebated, New York State would raise close to $2.9 billion in taxes which would remove approximately one-third of our projected budget deficit. This will help us to continue to provide essential services to our fellow New Yorkers, including education, health care, and human services. This is an immediate solution to our dire budget crisis. This tax is already in place, thus it would cost nothing to set up and could begin generating revenue for our state immediately. Further, this tax would be a temporary tax and not punitive nor retroactive. The collection of this tax should be structured in a manner such that it is collected from those who are in the strongest financial position to pay it, while not unfairly burdening small investors.

Finally, many of BALCONY's members work on Wall Street and many of their family members and friends rely on the revenue from Wall Street to survive, which is why BALCONY is endorsing what we believe is a non-punitive, common sense, temporary revenue enhancer that will not unfairly nor disproportionately impact the bottom line of our Wall Street firms. We recognize and appreciate the many contributions Wall Street makes to the success of our great state. At a time when Wall Street is experiencing record profitability we ask all of our friends on Wall Street to further help New York fortify its foundation to help us to provide vital services to our fellow New Yorkers and to continue to provide a sound operating environment for the world's financial capital - Wall Street.

For more information contact:

Lou Gordon, Director of BALCONY

Phone: 212-219-7777

Email: loug@balconynewyork.com

BALCONY * 212-219-7777 * 633 3rd Avenue, 17th Floor * New York, NY 10017

www.balconynewyork.com