The trade group Sifma has issued a report attacking the financial transaction tax favored by several leading Democratic presidential nominees.
Sens. Elizabeth Warren, D-Mass., and Bernie Sanders, D-Vt., have both expressed support for a transaction tax, in addition to other taxes on the wealthy, according to the Washington Post. Advisers to former Vice President Joe Biden are now also considering taxing certain transactions such as stocks and bonds sales, people familiar with the discussion tell the paper.
But according to Sifma — a trade group that represents securities firms, banks and asset management firms — such a tax would harm individual investors.
That’s because FTTs increase costs while lowering returns, fail to curb volatility and in fact cause it to increase because of declining trading volumes, raise financing costs for municipalities, the federal government and corporations and drive up consumer goods prices, Sifma says.