Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Companies  >  All News

News : Companies
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors

Modern Markets Initiative : Issues New Report on the Impact of the Retirement Tax, Known as the ‘Financial Transaction Tax'

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/12/2019 | 12:31pm EDT

— In-Depth Analysis Reveals That the Tax Would be a Major Blow to Pensions, University Endowments, Retirees and Families Saving for College —

— The Proposed ‘Financial Transaction Tax’ is Not a Tax on Wall Street, But is Actually a Retirement Tax on American Savers —

Modern Markets Initiative (“MMI”), the leading education advocacy organization devoted to the role of technological innovation in creating the world’s best markets, today released a new report on the economic impact of Senate bill S. 1587, the Inclusive Prosperity Act of 2019’s proposed financial transaction tax (“FTT”). The report, A Study on the Effects of a Retirement Tax/Financial Transaction Tax on Retirement Security, College Savings and University Investments, pointedly focuses on how the potential tax would impact the entire financial and investing ecosystem, particularly Americans saving for retirement and for their children’s college educations. A full version can be downloaded and reviewed here.

The retirement tax has been heavily touted and endorsed by several of the Democratic candidates running for President.

“Our in-depth analysis shows that the FTT that has been presented by some politicians in Washington as a ‘pound of flesh from Wall Street’ is in reality, a severe retirement tax on American savers from all income levels,” said MMI CEO Kirsten Wegner. “Not only would the FTT fail to raise a meaningful amount of revenue, as history has shown, but the tax would also negatively impact pension funds, university endowments and other savings vehicles. It is truly ironic that the FTT would actually hurt the very same people that the proponents of the tax aim to help.”

MMI’s analysis makes clear that any transaction tax would drastically harm institutions trading large volumes of securities such as pension funds, mutual funds and other institutional investors that directly represent the financial interests of countless American workers, as well as average Main Street investors with 401k Retirement or 529 College Savings accounts. The FTT that has been recently championed by certain Democratic nomination hopefuls, including Bernie Sanders and Elizabeth Warren, would cause significant financial implications for average 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.

The report goes into detail to transparently lay out how MMI researched and determined its economic impact projections. For each savings vehicle provided in the report, analysts have provided detail on the asset class exposure, calculation methods, spread costs and other considerations related to that savings vehicle.

Ms. Wegner added: “Transparency is a key principle of MMI’s values, so it was very important for us to share our full analysis with the public. We fully intend to drive the conversation about the FTT and educate policymakers, the public and key stakeholders on the true impact of such a tax.”

For more information about its new report and MMI’s education efforts, visit www.modernmarketsinitiative.org.

About Modern Markets Initiative

The Modern Markets Initiative (MMI) is an education and advocacy organization devoted to the role of technological innovation in creating the world’s best markets. It was founded in 2013 by leading, quantitative trading firms whose collective role in creating market efficiency contributes to a dramatic reduction in trading costs for investors. MMI engages and educates public audiences about the value modern market professionals provide to today’s electronic marketplace.


© Business Wire 2019
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Companies"
01:12aHENNES & MAURITZ : H&M summer collection boosts third quarter sales growth
AQ
01:11aELDORADO GOLD : Greece seeking new mining jobs and higher royalties in talks with Canada's Eldorado Gold
AQ
01:11aAPPLE : challenge to EU over €13bn Irish tax order
AQ
01:11aATLANTIA : chief exec set to step down as bridge probe darkens
AQ
01:11aJP MORGAN CHASE MPANY : US authorities charge JP Morgan metals traders with 'racketeering'
AQ
01:11aMORGAN STANLEY : Endeavor looks to raise $712m in public listing
AQ
01:11aCUSHMAN & WAKEFIELD : City moves who's switching jobs
AQ
01:11aNATIONAL GRID : Former National Grid boss 'heads for City Fibre'
AQ
01:11aVIVENDI : Canal+ pairs up with Netflix in a pay-TV shift
AQ
01:11aKazakh financial group to list in London in boost to market
AQ
Latest news "Companies"