Financial transaction and excessive taxation on hedge funds would take money out of retired Kentuckians’ pockets, in addition to other state-based scholarships, nonprofits, and foundations. These organizations can scarcely afford burdensome taxation rates, which is exactly what a financial transaction tax would impose. Key excerpts can be found below and the full policy primer was published by the Pegasus Institute.
“Such a tax would, in proponents’ view, restrict “excessive trading that is designed to manipulate the markets instead of benefiting the overall economy.” However, in seeking to disempower one class of Americans, an FTT would likely divert funding from other, worthwhile sources while only negligibly (if at all) fulfilling its stated objectives.”
“Research reveals FTTs neither effectively reduce volatility nor efficiently raise revenue. FTTs may harm institutional investors, potentially cutting pension plans, retirement savings accounts, and university endowments. Kentucky’s savers rely upon a number of institutions which could be affected by an FTT.”