Huizenga, McHenry Introduce Legislation to Protect Middle Class Families, Those Saving for Retirement from Financial Transaction Tax
Washington, March 8, 2021
Last week, Michigan Congressman Bill Huizenga (R-MI) and Congressman Patrick McHenry (R-NC), the top republican on the House Financial Services Committee, introduced legislation to protect American savers and investors from Democrats’ harmful tax proposals. The Protecting Retirement Savers and Everyday Investors Act would block states from imposing financial transactions taxes (FTTs) on certain industry participants, including stock exchanges and broker-dealers, which would be paid by out-of-state investors when the FTT is passed onto them.
Following the GameStop hearing last month, Democrats in Washington have revived the idea of introducing a financial transaction tax. Media reports indicate the Biden Administration is “studying” the idea. In reality, such a proposal would levy taxes on Main Street investors including middle class families, retail investors, those saving for retirement, and even pensioners.
“Neither the federal government nor a state government should be making it harder for Americans to save for their future,” said Congressman Bill Huizenga, who serves as Ranking Member of the Capital Markets Subcommittee. “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. 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.”
“Democrats continue to ignore the facts by pushing a financial transaction tax. They claim their state-level FTTs would only be paid by the wealthiest, but Americans saving for their futures across the country would end up footing the bill,” said Patrick McHenry, the Ranking Republican Member on the House Financial Services Committee. “These FTTs would penalize Americans saving for retirement, their first home, or their child’s education, all at a time when they can least afford it. As we come out of the COVID-19 crisis, we should be expanding everyday investors’ access to our markets, not holding them back from investing in their future. Republicans will continue to fight for savers and everyday investors, while Democrats push progressive policies to hurt these hardworking Americans.”
In the 116th Congress, this legislation received support from: Americans for Tax Reform, the National Taxpayers Union, the American Retirement Association, and others.
Read background on the Protecting Retirement Savers and Everyday Investors Act.