London Daily

Focus on the big picture.
Saturday, Aug 02, 2025

House Republicans move to block financial transaction tax as GameStop furor revives Dems' calls for penalty

House Republicans move to block financial transaction tax as GameStop furor revives Dems' calls for penalty

House Republicans on Wednesday unveiled a bill to block a financial transaction tax after the recent frenetic trading of GameStop shares revived a years-long effort by progressive Democrats to impose a penalty on stock trades.
The proposal, a copy of which was obtained by FOX Business, would prohibit states and municipalities from imposing taxes on transactions.

Rep. Patrick McHenry, R-N.C., the lead Republican on the House Financial Services Committee, and Rep. Bill Huizenga, R-Mich., reintroduced the Protecting Retirement Savers and Everyday Investors Act after Democrats seized onto the GameStop trading frenzy to make the case for a financial transaction tax.

During a House hearing last week to examine the GameStop furor, Rep. Maxine Waters, D-Calif., who chairs the Financial Services Committee, said she is considering such a tax, which is supported by progressive lawmakers, including Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., as well as Reps. Ilhan Omar, D-Minn., and Alexandria Ocasio-Cortez, D-N.Y.

They see it as a way to reduce speculative betting that was behind last month's wild swings in the price of GameStop stock, which surged 1,000% in two weeks after an army of at-home traders put their support behind the stock, betting that share prices would rise even as Wall Street short-sellers gambled the exact opposite.

“A small tax – 0.1% – on each Wall Street trade would reduce high frequency trading, a practice which drains profits from retail investors and benefits only the very rich,” Omar tweeted during the GameStop furor. Omar previously introduced legislation with Sanders calling for taxes of 0.5% on stock trades, 0.1% on bonds and 0.0005% on derivatives.

But critics, including McHenry and Huizenga, say that a financial transaction tax could decrease trading activity, lower earnings and ultimately hurt the average American who's trying to save for retirement. The tax on stock trades is applied each time a financial transaction is conducted, which includes mutual funds – owned by roughly 45% of U.S. households – and pension plans.

“Democrats continue to ignore the facts by pushing a financial transaction tax," McHenry said in a statement. "They claim their state-level FTTs would only be paid by the wealthiest, but Americans saving for their futures across the country would end up footing the bill. These FTTs would penalize Americans saving for retirement, their first home, or their child’s education, all at a time when they can least afford it."

One study from the Securities Industry and Financial Markets Association (SIFMA), an industry trade group, found that a financial transaction tax would cause a “cascade of taxation that will accumulate during the standard operations of a mutual fund portfolio, resulting in significant reductions in overall returns.”

The average mutual fund investor would have to save an additional $600 per year – a 12% increase in savings – or work an additional two years to achieve her retirement goals, the group estimated. If the tax is more than 0.1%, that individual would have to save (or work) more. Investors in an active small-cap equity mutual fund would likely see returns shrink by an estimated 1.62% annually, according to SIFMA.

The GOP lawmakers also argued that it would violate President Biden's campaign promise to not raise taxes on Americans earning less than $400,000 annually.

"A financial transaction tax would clearly break President Biden’s promise to not raise taxes on middle-class families and would negatively impact retirement savers, pensioners, families saving for college, and everyday investors," Huizenga said. "If Washington wants to take a risk, it should try to do more with less by cutting federal spending, instead of taking more money away from Americans investing to build a brighter and more secure future.”

Imposing a 0.1% tax on stock, bond and derivative transactions would raise an estimated $777 billion over the next decade, according to a 2018 analysis by the nonpartisan Congressional Budget Office.

The nation's debt has been pushed to a record high due to massive amounts of coronavirus relief spending and is poised to hit $30 trillion this year once Democrats pass President Biden's $1.9 trillion stimulus package.
Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
J.K. Rowling Limits Public Engagements Citing Safety Fears
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
×