Mon, Sep 1, 2014
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  4. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  5. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest