Release Date: September 23, 2011
Contact: Andrew DeSouza, 202-962-7390, email@example.com
Trade Associations Oppose Global Financial Transaction Tax
Washington, DC, September 23, 2011 –A broad group of trade associations sent a letter to U.S. Treasury Secretary Timothy Geithner reiterating their opposition to a financial transaction tax and urged him to continue to encourage other G20 members to resist pressure to adopt proposals for this tax on a global basis.
“A transaction tax will cycle through the entire U.S. economy, harming both investors, and businesses. A number of studies have shown that a FTT will impede the efficiency of markets, impair depth and liquidity, raise costs to issuers, investors, and pensioners, and distort capital flows by discriminating against asset classes,” the associations said in the letter.
The letter stressed how a financial transaction tax would counter strong, sustainable, and balanced growth and will be potentially detrimental to the fragile state of global markets and the economy. Major economies that have adopted a financial transaction tax have had overwhelmingly negative results.
The letter was signed by the Business Roundtable, the Financial Services Forum, the Investment Company Institute, the National Association of Manufacturers, the National Federation of Independent Business, the Securities Industry and Financial Markets Association, and the U.S. Chamber of Commerce.
A copy of the letter could be found at the following link: http://www.sifma.org/issues/item.aspx?id=8589935595
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 support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. 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 http://www.sifma.org.