'If targeting high-volume traders is the goal of the legislation, then you have to ask whether or not the legislation matches the goal,' said Jack Towarnicky of the Plan Sponsor Council of America. (Photo: Shutterstock)
Bicameral legislation introduced Tuesday by Congressional Democrats would slap a new transaction tax on most securities sales.
The Wall Street Act of 2019, the latest iteration of Democratic lawmakers' attempt to tax stock market trading, would levy a 10 basis-point charge on the sales of stocks, bonds, and derivatives.
That would create more stable equity markets by discouraging high frequency trading of the kind that spurred the “flash crash” in May of 2010, according to the bill's sponsors. And it would raise a bundle of cash for federal coffers.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
