White House dismisses financial transaction tax

According to Marketwatch, during a panel discussion before the Democratic National Convention began, Dan Pfeiffer, President Barack Obama’s communications director, said the White House in unlikely to support the idea of taxing the sale of stocks and bonds. This financial transaction tax already has been instituted by France and is gaining support from other members of the European Union.

Although advocates for the tax say it could raise billions of dollars and do little harm if it were small enough, others push back that it could dampen speculation among large investors and encourage investors to hold onto their investments longer. They further expect that such a tax would drive investors overseas, ultimately hurting U.S. markets.

Although Pfeiffer said the transaction tax has been a topic of discussion, he dismissed much of the talk saying, “we don’t always agree with the rest of the world.”

White House not keen on financial-transaction tax

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