MMI’s latest study on the impact of the Financial Transaction Tax (FTT) reveals a definitive conclusion:
The proposed FTT is a Retirement Tax on American savers.
Our in-depth analysis revels that the revenue generated from this tax would come directly from the pockets of Main Street investors saving for retirement, college, and other life milestones. Our report looks at the economic impact of the FTT, proposed in the Inclusive Prosperity Act of 2019 (S. 1587), on a number of savings vehicles utilized by the average investor. The findings highlight the devastating impact this tax would have on American savers, including:
- $19 million in annual FTT on 529 College Savings plans, or the equivalent of a year of full in-state tuition for 1,900 students at a public university;
- $24 million in annual FTT for a single public university endowment with $20 billion AUM, or the equivalent of 3,227 college scholarship in a given year;
- $64,232 in annual FTT over the lifetime of a 401k account, or the equivalent of delaying the average individual’s retirement by two years; and,
- $132 million in annual FTT for the typical state public pension plan with more than $68 billion in assets under management.