Obama administration officials support efforts to assess fees on financial firms that pose a risk to the larger economy; however, they oppose levying fees on ordinary investors.
Retail Investors
"We're very much synched up with the goal of assuring that the largest financial institutions" bear the burden for risky investments, Lael Brainard, the Treasury undersecretary for international affairs, told reporters yesterday. The Obama administration has proposed a "financial crisis responsibility fee" to be paid by the largest banks, not retail investors.
Bank trade groups like the Financial Services Forum and Securities Industry and Financial Markets association have opposed transaction tax proposals in the past. In September, they joined with five other business trade groups to send a letter to Treasury Secretary Timothy F. Geithner opposing the idea, which was gathering support in Europe.
"The G-20 members have committed to work together to support policies that will lead to strong, sustainable and balanced growth," the trade groups, which included the U.S. Chamber of Commerce and the Business Roundtable, wrote in the Sept. 22 letter. "The imposition of a financial transaction tax would run counter to achieving these objectives."
The European Commission, the EU's executive arm, will discuss its proposals for a transaction tax at this week's summit in France, EU officials said last week. There is not yet strong support for a global tax, so next week's discussions will serve as a way to keep the topic in focus for future years, the officials said.