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The Securities Industry and Financial Markets Association (SIFMA) today released the following statement by Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy, on the introduction of legislation to impose a tax on securities, futures, and derivatives transactions by Senator Harkin, Representative DeFazio and other Members of Congress.
“As we’ve said before, a transaction tax on nearly all securities is the wrong policy at the wrong time. While we continue to work toward economic recovery and job creation, this legislation would severely undermine that effort.
“The best way to create jobs is to ensure that businesses have the necessary credit available to invest in new equipment and facilities. A transaction tax on securities would not only raise the cost of capital desperately needed by businesses, it would tax every day investors at a time when the economy remains fragile and assets are just beginning to regain value. It would also put U.S. investors and businesses at a competitive disadvantage to the rest of the world.
“Additionally, the so-called carve outs on tax favored savings accounts, pension funds, and transactions of less than $100,000 annually will not work because the biggest trades are executed by institutions like mutual funds on behalf of millions of individual investors. The legislation would also be a compliance nightmare, raising costs for millions of mutual fund shareholders.”
