Letter: Financial Transaction Tax

Written By Unknown on Jumat, 22 Februari 2013 | 13.25

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Re "The 0.03% Solution to Washington's Budget Problems," by Jesse Eisinger (DealBook, Feb. 7):

Decades of academic research show that a financial transaction tax would harm Main Street, not Wall Street, and hardly raise the revenue that proponents claim that it would. The United States, Sweden and Japan have had similar fees in the past and repealed them because the tax hurt average investors, reduced savings and made it harder for America's job creators to grow.

Highly liquid markets allow retail investors to get the best price and pay dramatically lower transaction costs when they buy and sell stocks and bonds, fueling the capital needs of businesses to expand and create jobs.

Proponents and opponents of the financial transaction tax agree that it would double trading costs, reduce the number of financial transactions by at least 50 percent, and reduce the liquidity that benefits investors and businesses.

The wisdom of Presidents John F. Kennedy and Lyndon B. Johnson in repealing this job-killing tax still holds true today.

THOMAS QUAADMAN
Vice President, Center for
Capital Markets Competitiveness
U.S. Chamber of Commerce
Washington, Feb. 7, 2013


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