Supporters of the tax say it would staunch high frequency trading. Critics say it would also be levied on trading in qualified retirement accounts like 401(k)s and IRAs. (Photo: Shutterstock)
Recently introduced legislation that would tax most securities sales stands to create a significant new source of revenue for the federal government.
The Wall Street Tax Act of 2019, introduced this month in both chambers of Congress by progressive Democrats, would levy a 10 basis-point tax on traded stocks, bonds, and derivatives, with some exemptions for new issues and short-term debt. Proposals in previous congressional sessions would have created a 3 basis-point tax.
The bill has 19 sponsors in the House, but would likely be dead on arrival in the Republican-controlled Senate.
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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.
