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 The chamber pointed out that a previous FTT was repealed by bipartisan support in 1965 and that, if imposed, an FTT would come at the expense of money that would otherwise go into saving for retirement, a first home,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.