Release Date: March 4, 2013
Contact: Carol Danko, 202.962.7390, email@example.com
SIFMA Statement Regarding President Obama's FY 2015 Budget Proposal
Washington, D.C., March 4, 2013-SIFMA today released the following statement from president and CEO, Kenneth E. Bentsen, Jr. in response to various provisions contained in the Obama Administration's Fiscal Year 2015 Budget Proposal:
"The Obama Administration's Budget Proposal is a starting point that should give Congress a chance to work with the President to reach a fiscal agreement by 2015 to reduce our debt and deficits. While we encourage both parties to work together on a plan to simplify the tax code and create opportunities for job creation and economic growth, we have concerns with several components of today's proposal.
"A tax on financial institutions continues to be an ill-timed and ill-considered concept. It is important to remember that TARP capital injections have largely been repaid with significant profit to the taxpayer. Imposing such a tax ultimately is a tax increase on individual investors and users of capital to the detriment of the economy.
"The 28 percent cap on tax preferences will impose a tax on municipal bonds that could discourage investment in key infrastructure projects and restrict capital to cash-strapped state and local governments. The limits imposed on the accrual of tax-deferred savings could negatively impact an individual's ability to save for retirement, at a time when we should be encouraging saving more and starting early.
"We also have concerns with the treatment of financial products. The mark-to-market proposal could reduce incentives for savings and investment, specifically regarding assets outside retirement accounts, and negatively impact ordinary Main Street investors who may be exposed due to holdings in mutual fund shares or other holdings. Finally we have concerns on the impact of the independent contractor provisions on independent financial advisors."
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.