Tue, Sep 27, 2016
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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  5. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco