In politics, there is always a tension between the desire to fund worthwhile projects and the obtaining the monies necessary to do so. Finding sources of funding is a never-ending struggle of balancing the impacts of the taxes imposed against the potential benefits provided. For centuries, a financial transaction tax (FTT) has been bandied about one potential source of funding in this ongoing effort. However, in reviewing the history, research and the results of our study of market participants, it is clear that imposing an FTT on the U.S. securities markets is likely to have far-reaching negative consequences.
Download this report and learn more about an FTT, such as why:
- 65% of respondents believe an FTT will negatively impact their own 401(k) or other retirement portfolios
- 72% of respondents expect an FTT would harm retail trading and retail traders
- 84% think an FTT would negatively impact active managers, due to their more frequent trading, thus accelerating the move to passive trading
- Almost 25% of respondents believe that an FTT will eliminate the benefit of zero commissions for retail traders