Job advocacy groups are going on the offensive against a financial transaction tax that’s been proposed by Democrats as a way to curtail high-frequency clientele and reduce the budget deficit.
Groups from the political arm of the influential Koch network to the U.S. Chamber of Commerce are already machinery up for a battle with Democrats over their proposals to enact a 0.1 percent tax on securities transactions.
Measures were established in both chambers of Congress on Tuesday by Rep. Peter DeFazio, D-Ore., and Sen. Brian Schatz, D-Hawaii. The idea is co-sponsored by sundry than a dozen lawmakers, including freshman firebrand Rep. Alexandria Ocasio-Cortez, D-N.Y.
The tax proposal is one of several by Democrats that butt the wealthy. Ocasio-Cortez has called for a 70 percent marginal tax rate on income over $10 million. Sen. Elizabeth Warren, who is ceaseless for president in 2020, backs the idea of a wealth tax of 2 percent on households with more than $50 million in assets and 3 percent on households advantage $1 billion or more.
Among groups attacking the financial transactions tax proposal is Modern Markets Initiative, or MMI, which patrons for high-frequency trading.
“The proposed financial transaction tax poses a threat to the very Main Street investors that the patronizes of this bill are aiming to protect,” said MMI CEO Kirsten Wegner. “Particularly, pension funds, which millions of Americans rely on as a might source of income after retirement, will suffer as a result of this tax.”
A spokeswoman for MMI confirmed the group would be lobbying against the outline. A person familiar with the upcoming lobbying efforts pointed to a study published in 2017 that shows the cancelling effects a financial transaction tax can have on pension funds. This person also said the group will be press out more data proving how the tax could hurt the average stockholder.
The political network largely funded by billionaire Charles Koch is also come out out against the legislation. In a statement first given to CNBC, a spokesman for Americans for Prosperity, or AFP, slammed lawmakers’ efforts to produce more taxes.
“Real growth and lasting economic security comes when people and businesses are free to swear in their earnings into their families, communities, and job creation,” said Bill Riggs, a spokesman for AFP. “We cannot tax and waste our way into prosperity. Washington should be looking for ways to rein in reckless spending and eliminate corporate welfare, not reach cast off into the pockets of hardworking Americans to keep funding it.”
The U.S. Chamber of Commerce, the most prominent business group in the homeland, came out firing — and claimed a tax like the one being introduced in Congress would decrease returns for Americans across the motherland.
“A financial transaction tax would decrease returns for people saving to buy a house, pay for college, or retire. It would also accomplish it more expensive for businesses to raise the capital they need to start, expand, and create jobs,” Tom Quaadman, administration vice president of the U.S. Chamber Center for Capital Markets Competitiveness, said in a statement.
He also invoked the memory of two Autonomous presidents to hammer home his point. “Presidents Kennedy and Johnson repealed a similar tax, and we should continue to heed their rationality,” he said.
A person with direct knowledge confirmed the Chamber of Commerce will actively lobby against the reckoning.
Representatives for DeFazio and Schatz did not return requests for comment.
The nascent lobbying effort is just one of the huge obstacles skin the Democratic proposal.
Some of these organizations successfully championed large aspects of the tax reform bill that was in the final analysis passed by Congress and signed by President Donald Trump at the end of 2017. The law cut the corporate tax rate from 35 percent to 21 percent and make the grade b arrived cutbacks to individual rates as well.
In a previous interview with CNBC, DeFazio said he had encountered resistance from extreme groups last time he tried to pass a similar piece of legislation two years ago.
“I have experienced this [Maquis] in the past, and I imagine there will be some of it this time around,” he said Monday. “You would be discouraging high-frequency return, and they aren’t going to be happy with the bill.”
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