Stock Transfer Tax Gains Traction in New York Budget Debate (1)

New York state lawmakers on Tuesday are set to weigh a variety of Democratic revenue-raising proposals for a budget deal to help close the state’s $15 billion deficit.

At the top of the list: a bill to resurrect a state tax on stock trades. The levy, last used in 1981, has gained a strong political foothold in the Assembly — and even lawmakers in Washington are reviving debate over a financial transaction tax. Wall Street heavyweights are doing everything they can to extinguish both fronts.

Financial titans like the Securities Industry and Financial Markets Association, whose members include Goldman Sachs, ...