Release Date: November 2, 2011
Contact: Andrew DeSouza, 202.962.7390, email@example.com
SIFMA Opposes Latest Financial Transaction Tax Legislation
Washington, DC, November 2, 2011—SIFMA today released the following statement from Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy in response to legislation introduced by Senator Tom Harkin and Representative Peter DeFazio to impose a tax on trades of stocks, bonds and derivatives contracts.
“We remained opposed to the idea of imposing a financial transaction tax. It’s important to be clear about the economic and financial impact of such a tax not just on markets, but on investors. A financial transaction tax is essentially a sales tax on investors. At a time when we face a slow economic recovery, such a tax will impede the efficiency of markets and impair depth and liquidity as well as raise costs to the issuers, pensions and investors who help drive economic growth.
“Major economies that have adopted such taxes have had overwhelmingly negative results, including reduced asset prices, trading moving to other venues, market dislocation and decreased liquidity. We encourage Congress and the Administration to continue to resist efforts to implement such a tax.”
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.