Press Release

Release Date: December 3, 2009

Contact: Andrew DeSouza, (202) 962-7390, adesouza@sifma.org

SIFMA’s Bentsen Statement on Introduction of Transaction Tax Legislation

Washington, DC, December 3, 2009—The Securities Industry and Financial Markets Association (SIFMA) today released the following statement by Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy, on the introduction of legislation to impose a tax on securities, futures, and derivatives transactions by Senator Harkin, Representative DeFazio and other Members of Congress.

“As we’ve said before, a transaction tax on nearly all securities is the wrong policy at the wrong time. While we continue to work toward economic recovery and job creation, this legislation would severely undermine that effort.

“The best way to create jobs is to ensure that businesses have the necessary credit available to invest in new equipment and facilities. A transaction tax on securities would not only raise the cost of capital desperately needed by businesses, it would tax every day investors at a time when the economy remains fragile and assets are just beginning to regain value. It would also put U.S. investors and businesses at a competitive disadvantage to the rest of the world.

“Additionally, the so-called carve outs on tax favored savings accounts, pension funds, and transactions of less than $100,000 annually will not work because the biggest trades are executed by institutions like mutual funds on behalf of millions of individual investors. The legislation would also be a compliance nightmare, raising costs for millions of mutual fund shareholders.”

-30-

The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to develop policies and practices which strengthen financial markets and which encourage capital availability, job creation and economic growth while building trust and confidence in the financial industry. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit www.sifma.org.