Financial leaders in France and in other European countries are considering placing a tax on the sale of stocks and bonds. But the White House is opposed to such a tax, saying it would drive trading overseas and hurt US financial markets.
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Advocates of the tax say it would do little to harm trading of securities and that even a small tax would raise billions of dollars.
The tax is being considered as an effort to improve European countries’ economies. But President Obama’s communications director, Dan Pfeiffer, makes the point that the US doesn’t always go along with what the rest of the world is doing.
Even if the White House supported such a move, it’s likely Republicans in Congress would be opposed and move to thwart it.
Such a tax would likely hurt returns further in an already weak economic environment. The implications of such a tax would likely be far broader than they appear.