SIFMA opposes Securities Transaction Tax proposed during the last G-20 meeting in St Andrews
18 November 2009
“Imposing a tax on financial transactions is the wrong idea at the wrong time,” Kenneth E. Bentsen executive vice president said. He continued saying“Such a tax would likely result in a stalling of the stock market.”
The Securities Industry and Financial Markets Association (SIFMA) today released a statement from Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy on a legislative proposal that would impose a tax on securities, futures and derivatives transactions. Imposing a tax on financial transactions is the wrong idea at the wrong time. Such a tax would likely result in a stalling of the stock market, cutting off companies’ ability to raise capital to fund new investments in plants and equipment, and thus create jobs.
“Furthermore, it would directly and detrimentally affect millions of Americans by imposing a tax on their savings such as mutual funds, just as they are seeing their investment assets regain value. Additionally, the exemptions contained in the proposed legislation are completely unworkable.” ,stated Mr. Bentsen
He carried on, stating,“At a time when we are in the beginning stages of economic recovery, imposing a tax that would actually constrict economic expansion is bad policy. The better policy direction to ensure any future financial crisis does not result in an economic downturn is establishing a strong systemic risk regulator and clear, unambiguous resolution authority for failing institutions.”
© SIFMA - Securities Industry and Financial Markets Association
