Additional concerns include the indirect impact on middle-class investors — the tax would hit trades done by mutual funds and retirement plans such as 401(k) accounts — and the competitive effects on particular jurisdictions, as the tax creates incentives for such transactions to move across borders.
Given these concerns, one would think that the U.S. Congress would carefully debate the merits of a financial transaction tax, not rush to approve it. Yet the U.S. Senate just passed a bill that may enable states to impose their own financial transaction taxes — a recipe for increasing economic uncertainty.
Supporters of the Marketplace Fairness Act (MFA), which the U.S. Senate passed on May 6 on a 69-27 vote, claim that online retailers enjoy an unfair advantage over their brick-and-mortar competitors. The bill, they maintain, addresses this imbalance by allowing states and localities to require "remote sellers" to collect taxes for "sales" to their residents.
However, the bill is silent on the particular products and services of "sellers" and "sales" it covers. Thus, it could open the door for state and local governments to tax financial transactions they deem as "sales" on businesses throughout the country.
No comments:
Post a Comment