US. Another Hit to Retirement Plan Investors: Financial Transaction Tax
An analysis shows a new bill introduced in the Senate would result in a significant financial hit to retirement plan investors. Modern Markets Initiative is pushing back on a tax provision in the bill.
The Inclusive Prosperity Act of 2017 has been introduced in the Senate and includes a financial transaction tax (FTT).
According to Modern Markets Initiative (MMI), the FTT would be applied to every stock traded, including a 0.5% rate on equity, a 0.1% rate on debt and a 0.005% rate on derivatives. MMI, an education and advocacy organization, which is strongly opposing this tax, has done an analysis of what its costs would be for pension funds and all investors.
While MMI’s analysis focuses specifically on public pension funds, an op-ed by CEO Kirsten Wegner notes that the tax will affect all defined benefit (DB) plans, individual retirement accounts (IRAs), defined contribution (DC) plans and individual investors.
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