Home Financial Advisors Advisers split on proposals for financial transaction tax

Advisers split on proposals for financial transaction tax

Author

Date

Category

The latest Democratic White House hopeful to propose such a levy is Michael Bloomberg. The former New York City mayor would place a 0.1% tax on all stock and bond sales, as well as on payments on derivatives contracts. He would phase the tax in starting at 0.02%.

An outline of Mr. Bloomberg’s financial reform agenda said a financial transaction tax could defray the costs of market regulation, fund needed social spending and “help address inequality.” It also asserted that the increasing speed of trading “isn’t always socially beneficial.”

Taxing high-frequency traders is OK with George Reilly, founder of Safe Harbor Financial Advisors. He said the levy wouldn’t burden his clients, who are encouraged to use a passive investment plan allocated mostly to low-cost index funds.

“To the extent a financial transaction tax would discourage active trading and market-timing activities and get folks in a more strategic investment planning mode, I think it can be beneficial,” Mr. Reilly said.

.“We do need to generate more revenue for essential government benefits and services, and if some of that can come from folks who want to play the market, that’s fine with me.”

[Read More]

Linda Barbara

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum imperdiet massa at dignissim gravida. Vivamus vestibulum odio eget eros accumsan, ut dignissim sapien gravida. Vivamus eu sem vitae dui.

Recent posts

Gold: the most effective commodity investment

Gold allocations of 2%-10% in a typical pension portfolio1 have provided better risk-adjusted returns than those with broad-based commodity allocations Investors have long recognised the...

Can you safely supercharge your retirement savings?

That’s a pretty interesting question, and I think the answer is yes. By “supercharge” I mean adding auxiliary power to something that’s already strong. Let me...

Top Ten Student Loan Forgiveness Mistakes

Many student loan borrowers are hoping that Joe Biden will forgive their student loans. But, these common errors may make you ineligible for student...