U.S. Rep. Bill Huizenga (R-MI) recently unveiled legislation to stop a potential stock trading tax that could harm American investors, particularly middle class families, retail investors, those saving for retirement, and even pensioners.
Democratic lawmakers in Washington, D.C., reportedly have revived the idea of introducing a financial transaction tax (FTT), which is applied each time a financial transaction is conducted, including transactions of mutual funds and those made by other retirement accounts like pension plans. The FTT would be a new, additional tax on top of already-existing income taxes, capital gains taxes, and corporate taxes, according to Rep. Huizenga, and media reports indicate that the Biden administration is studying the idea.
“Neither the federal government nor a state government should be making it harder for Americans to save for their future,” said Rep. Huizenga, who in a proactive move joined bill sponsor U.S. Rep. Patrick McHenry (R-NC) on March 3 to introduce the Protecting Retirement Savers and Everyday Investors Act, H.R. 1584.
If enacted, H.R. 1584 would block states from imposing FTTs on certain industry participants, including stock exchanges and broker-dealers, that would be paid by out-of-state investors when the FTT is passed onto them, according to a bill summary provided by Rep. Huizenga’s office.
“A financial transaction tax would clearly break President Biden’s promise not to raise taxes on middle class families and would negatively impact retirement savers, pensioners, families saving for college, and everyday investors,” Rep. Huizenga said. “If Washington wants to take a risk, it should try to do more with less by cutting federal spending instead of taking more money away from Americans investing to build a brighter and more secure future.”
The measure was originally introduced during the 116th Congress but expired at the end of the session.