Congressman Tom Price issued a presser this past Friday when he introduced legislation to oppose a financial transaction tax that’s being talked about in the European Union. The apparent rationale behind the tax is to tax currency bond and shares traded at banks and financial institutions in EU member nations who adopt the measure, according to the BBC. Congressman Price’s bill would prohibit “the Secretary of the Treasury from assisting any foreign government with respect to the collection of a tax on securities transactions occurring on a United States financial exchange.”
From Congressman Price’s presser:
“Paying taxes to other countries is a bad idea – and we need a law to stop it! This financial transaction tax would harm small businesses and investors while damaging American entrepreneurs’ ability to compete in a competitive global environment,” said Congressman Price. “France and other European Union nations want to charge more taxes on financial transactions, ignoring the fact that small investors will be forced out of capital markets. This move would impede financial markets efficiency, decrease liquidity, distort and discriminate within markets, and raise costs all at a time when what our economy desperately needs is more private capital investment in growth and job creation. I urge my colleagues to act on behalf of American entrepreneurs, investors and job creators by joining this effort to preempt the imposition of any form of a financial transaction tax on American markets.”
Talk of the “fiscal cliff” and increases on federal taxes have dominated the post-election media market. This little tidbit has seemingly been absent from the news that I’ve seen, but it could potentially have impact on the United States. Although, for all we know, President Obama could try to get the Securities and Exchange Commission to levy a “fee” on all securities transactions. Besides, only rich people own stock and need to pay their “fair share”, right? Remember, you never want a serious crisis to go to waste.