Sat, Jan 31, 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: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would