Tue, Jul 7, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

A financial transaction tax in the US, could it happen this time?

Tuesday, March 19, 2013

Bailey McCann, Opalesque New York:

The Financial Transaction Tax (FTT) is back on the table in the US. Members of congress have, steadily proposed one version of the tax or another, each year since 2009, although since congress is only focused on absolute dysfunction, the bills have yet to make it out of markup. Senator Tom Harkin (D-IA) and Congressman Peter DeFazio (D-OR), reintroduced the measure on February 28, causing editorial pages from all corners of the media universe to spring to life voicing mostly opposition to the idea. However, many of the arguments are weak, and given that financial transaction taxes are in place globally already, and set to expand in the EU, opponents may find themselves on the losing end of this battle.

Historical precedent

London has had a financial transaction tax on the books since 1694, it’s one of the oldest taxes continuously enacted in the UK, and made it to the US early on. The US levied an FTT from 1914 to 1966 on stock sales at a rate of 0.1% at issuance and 0.04% on transfers. Even now, the US still has a miniscule transaction tax - the Section 31 fee of 0.0034% on stock transactions. That fee goes to fund operating costs for the Securities and Exchange Commission (SEC).

The measure proposed by Senator Harkin and Representative DeFazio, seeks to impose a 0.03% tax on most non-consumer financial trading including stocks, bonds and other debts, except for their initial issuance. The tax would also cover all......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner