U.S. Rep. Bill Huizenga (R-MI) on Oct. 27 introduced legislation that would impose a taxation and fees limitation on transactions made by everyday investors, retirees and pensioners who are trying to save for their futures.
“No government, whether it’s federal or state, should be making it harder for Americans to save for the future,” said Rep. Huizenga, ranking member of the U.S. House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets.
The Protecting Retirement Savers and Everyday Investors Act, H.R. 8695, which Rep. Huizenga cosponsored with bill sponsor U.S. Rep. Patrick McHenry (R-NC), would prohibit states from imposing a Financial Transaction Tax (FTT) on certain industry participants, including Main Street investors saving for retirement, their first home or a student’s education.
Some states have proposed taxes and fees that are based on securities transactions and processing activity from investors from other states that would raise costs for all United States investors, even investors outside of the states levying the taxes and fees, according to the text of the bill.
“New Jersey is single handedly penalizing middle class families across America in an attempt to solve its own budget shortfall. New Jersey’s misguided financial transaction tax penalizes those saving for retirement, saving for college, and saving for a down payment on a house,” Rep. Huizenga explained. “Michiganders and Americans across the nation who are investing and saving for their futures should not be forced to pay New Jersey’s transaction tax.”
H.R. 8695, he added, “stops this tax increase, promotes financial security, and protects middle class families across America.”
Americans for Tax Reform, the National Taxpayers Union, and the American Retirement Association support the bill, which has been referred to the U.S. House Judiciary Committee for consideration.