Last week, leading progressive Democrats in both the House and Senate made it clear that they would use the debate over comprehensive tax reform to push for a new financial transactions tax.
Senator Tom Harkin (D-IA) and Rep. Pete DeFazio (D-OR) told reporters late last week that they were hopeful about the prospects for a new financial transactions tax.
The latest proposal would levy a tax of three basis points, or 0.03 percent, on the trading of financial securities, including stocks, bonds and other debt securities, except for their initial offering. Supporters of the tax claim it is intended to curb excessive speculation on Wall Street by making activities like high frequency trading more costly, without harming those engaged in long-term investments.
The push by leading progressives comes in the face of stiff opposition to the tax from Republicans, Wall Street and even the Obama administration. Jack Lew, the new Treasury Secretary, re-stated the White House’s opposition to the tax during his Senate confirmation hearings. Proponents of the tax claim, however, that Lew will be much more open to the tax than his predecessor Timothy Geithner.
According to the Joint Committee on Taxation, such a tax would raise $352 billion over 10 years.
Eleven European countries, including Germany and France, have adopted a similar tax, and there is a move to make the tax a European Union wide tax.
For more information
Please reach out to McDonald Hopkins Government Strategies for more information regarding the proposed financial transactions tax and how it may impact you and what you can do about it.
Steven C. LaTourette, President | 202.737.8933
McDonald Hopkins Government Strategies LLC
101 Constitution Avenue NW, Suite 600 East, Washington, D.C. 20001
Although McDonald Hopkins Government Strategies LLC is owned by the law firm McDonald Hopkins LLC, McDonald Hopkins Government Strategies is not a law firm and does not provide legal services. Accordingly, the retention of McDonald Hopkins Government Strategies does not create a client-lawyer relationship and the protections of the client-lawyer relationship, such as attorney-client privilege and the ethics rules pertaining to conduct by lawyers, do not apply.