Thirty-Six Members Of Congress Oppose Tax On Trading
16 Dicembre 2009 - 4:46PM
Dow Jones News
Thirty-six members of Congress came out against a proposed tax
on stock and derivatives trading, warning that it would drive up
unemployment and undercut a shaky economic recovery in the U.S.
Charging investors for trading stocks, futures, options and
other instruments would also drive up the cost of credit and
private investment for both businesses and governments, according
to a Dec. 15 letter sent by the 36 members, a copy of which was
seen by Dow Jones Newswires.
The letter marks the latest opposition to an early December
proposal by Rep. Peter DeFazio, (D., Ore.), who introduced the
transaction-tax idea as one way to raise money for job creation and
paying down the federal budget deficit.
"In reality, it would be a tax on all investment and savings
vehicles because mutual funds and money market fund transactions
are, by definition, purchases and sales of securities and bonds,"
wrote the members of Congress in the letter.
DeFazio has said the proposal would exempt pension funds, mutual
funds, education and health savings accounts, along with the first
$100,000 of transactions annually. But critics assert it would wind
up hitting all investors.
Estimating the tax at an annual $150 billion, the letter's
authors said it would raise the cost of investing in the U.S.,
depress shares of American companies and drive investors to
offshore markets.
Authors of the letter included Michael E. McMahon (D., N.Y.),
Carolyn B. Maloney (D., N.Y.), Debbie Halvorson (D., Ill.) and Luis
Gutierrez (D., Ill.), representing the nation's financial capital
as well as Illinois, which is home to the biggest futures exchange
operator in CME Group Inc. (CME) and the busiest U.S. options mart,
the Chicago Board Options Exchange.
The transaction-tax idea, first floated by DeFazio in February,
has drawn sharp criticism from exchange operators, market
participants and academics, and has failed to gain much traction in
Washington.
Defazio's bill is seen having little chance of immediate success
in the House; a jobs-creation package from House Speaker Nancy
Pelosi (D., Calif.) isn't expected to include the tax.
Obama administration officials like Treasury Secretary Timothy
Geithner are also seen as cool to the idea of taxing financial
transactions. Last month, NYSE Euronext (NYX) Chief Executive
Duncan Niederauer said administration officials assured him the
idea had been shelved.
Taxing trades still has the support of Sen. Tom Harkin (D.,
Iowa), who views the idea as a way for Wall Street to repay
economic damage done to the country as a whole.
German Chancellor Angela Merkel last week also signaled her
support for applying a similar charge to financial transactions in
Germany, following a U.K. move to tax bankers' bonuses.
-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117;
jacob.bunge@dowjones.com
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024
