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02 November 2011

SIFMA opposes latest financial transaction tax legislation


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SIFMA today released the following statement from Kenneth E Bentsen, Jr, executive vice president, public policy and advocacy, in response to legislation introduced by Senator Tom Harkin and Representative Peter DeFazio to impose a tax on trades of stocks, bonds and derivatives contracts.


“We remained opposed to the idea of imposing a financial transaction tax. It’s important to be clear about the economic and financial impact of such a tax not just on markets, but on investors.  A financial transaction tax is essentially a sales tax on investors. At a time when we face a slow economic recovery, such a tax will impede the efficiency of markets and impair depth and liquidity as well as raise costs to the issuers, pensions and investors who help drive economic growth. Major economies that have adopted such taxes have had overwhelmingly negative results, including reduced asset prices, trading moving to other venues, market dislocation and decreased liquidity. We encourage Congress and the Administration to continue to resist efforts to implement such a tax.”

Press release



© ISDA - International Swaps and Derivatives Association


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