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The GameStop situation highlights serious issues with investor protection and market integrity, a White House spokesperson told CNN Business on Sunday. The potential impact of a financial transaction tax on GameStop-type exchanges merits further study and may be part of a more in-depth assessment of such a tax for revenue and market stability, the door said. -speak.
Some Democrats have supported a tax on stock transactions as a way to generate much-needed income and address concerns about the health of financial markets. Chamber of Financial Services Speaker Maxine Waters said on Thursday she was “very interested” and “certainly considering” a financial transaction tax.
A 0.1% tax on stock, bond and derivative transactions could net the federal government $ 777 billion over a decade, according to a 2018 estimate from the Congressional Budget Office.
However, such a tax would face fierce opposition from Wall Street and it is not clear whether moderate Democrats would support it. Opponents warn this would backfire on retail investors by raising costs and making financial markets less liquid.
“This approach has a long history of unintended consequences that will penalize American workers, retirees and families,” a spokesperson for the Coalition to Prevent Taxation of Retirement Savings told CNN Business.
This coalition includes the New York Stock Exchange, the Nasdaq and UBS. Citadel Securities and Virtu Financial, two high-speed trading firms reportedly affected by a financial transaction tax, are also members.
“An FTT will increase transaction costs for investors – including individuals – undermine the competitiveness of our financial markets and hurt the US economy as we work to recover from this pandemic,” the spokesperson said. word.
“Let’s not waste the American people. You will be okay with the tax,” she said. “Our people are tired of saving you all when you make a mistake.”
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