U.S. House Financial Services Committee Ranking Member Patrick McHenry (R-NC) and Subcommittee on Investor Protection, Entrepreneurship and Capital Markets Ranking Member Bill Huizenga (R-MI) reintroduced the "Protecting Retirement Savers and Everyday Investors Act," a bill that would block states from imposing financial transaction taxes ("FTTs") on, among other securities industry participants, stock exchanges and broker-dealers.
Certain states have proposed taxes on securities transactions (see previous coverage on New York State's proposed Stock Transfer Tax), and analysts have commented that taxes imposed in one state would apply to investors in other states who traded on the relevant market.
The proposed bill would limit a state's authority to impose a direct or indirect tax upon a securities industry participant where the tax is based on (i) the volume or (ii) the value of securities transactions that the securities industry participant consummates.
SIFMA commended the introduction of the Act and reiterated its opposition to state-imposed FTTs.
- U.S. House Financial Services Committee Republicans Press Release: McHenry and Huizenga Reintroduce Legislation to Protect Retirement Savers and Everyday Investors
- H. R. ____, the "Protecting Retirement Savers and Everyday Investors Act"
- SIFMA Press Release: SIFMA Statement on the Protecting Retirement Savers and Everyday Investors Act
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