Which Is Better or Worse: The Financial Transaction Tax or the Capital Gains Increase?
Assessing the current proposals before Congress.
Washington Democrats are considering two motions to boost investment-related revenues. One is a financial transaction tax, or FTT, which would apply to the transactions of stocks, bonds, and derivatives. (Whether the FTT would exempt purchases and redemptions of funds that own such securities is unclear.) The other proposal, touted by President Biden during his speech to Congress, is to hike the capital gains rate on taxpayers who earn more than $1 million.