Business advocacy groups are fighting a proposed financial transaction tax aimed at limiting high-frequency trading, and decreasing the budget deficit.
Representative Peter DeFazio, D-OR, and Senator Brian Schatz, D-HI, introduced measures in both Chambers of Congress on Tuesday (March 5). The proposal is co-sponsored by more than a dozen democrats, including Representative Alexandria Ocasio-Cortez, D-NY.
However, many business advocacy groups are coming out against the proposed tax, including Modern Markets Initiative (MMI), which advocates for high-frequency trading.
“The proposed financial transaction tax poses a threat to the very Main Street investors that the sponsors of this bill are aiming to protect,” said MMI CEO Kirsten Wegner, according to CNBC. “Particularly, pension funds, which millions of Americans rely on as a main source of income after retirement, will suffer as a result of this tax.”
The political network, largely funded by billionaire Charles Koch, is also speaking out against the plan.
“Real growth and lasting economic security comes when people and businesses are free to invest their earnings into their families, communities and job creation,” said Bill Riggs, a spokesman for Americans for Prosperity (AFP). “We cannot tax and spend our way into prosperity. Washington should be looking for ways to rein in reckless spending and eliminate corporate welfare, not reach back into the pockets of hardworking Americans to keep funding it.”
The U.S. Chamber of Commerce also warned that the tax would decrease returns for many Americans.
“A financial transaction tax would decrease returns for people saving to buy a house, pay for college or retire. It would also make it more expensive for businesses to raise the capital they need to start, expand and create jobs,” said Tom Quaadman, executive vice president of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness, in a statement.
He added that “Presidents Kennedy and Johnson repealed a similar tax, and we should continue to heed their wisdom."