April 5, 2021

Chamber Will Continue to Urge Policymakers to Stand Against Tax on Trades

Following the huge swings in the value of GameStop stock earlier this year, the White House came out in support of studying the merits of a financial transaction tax. If implemented, it would be a sweeping tax on financial trades of all kinds. Previously, Sen. Bernie Sanders (I-VT) has proposed a 0.5 percent tax on stocks, a 0.1 percent tax on bonds, and a 0.005 percent tax on derivatives.

A recent bulletin from the U.S. Chamber of Commerce warned that “bringing back an FTT would be a huge mistake for main street, consumers, taxpayers, retirees, states, and localities.” The chamber pointed out that a previous FTT was repealed by bipartisan support in 1965 and that, if imposed, an FTT would come at the expense of money that would otherwise go into saving for retirement, a first home, or a child’s education.

Further, a recent poll conducted by the Chamber’s Center for Capital Markets Competitiveness found that 63 percent of Americans are deeply concerned and opposed to proposals to re-impose an FTT. A majority of votes also believe such a tax would undermine pressing policy priorities, particularly the nation’s recovery from COVID-19. As such, the Chamber said it would continue to advocate against the implementation of an FTT and would encourage policymakers to stand in bipartisan opposition to the proposed tax.