Pensions & Investments Editorial – Tax’s Excessive Expectations

Pensions & Investments Editorial – Tax’s Excessive Expectations
Pension funds and other tax-exempt asset owners, even though they generally don’t pay taxes, would pay this tax like other investors. But even if Congress exempted them from the transaction tax, they could not escape its consequences. They would still bear the brunt of the detrimental market impact of the tax, such as declining liquidity, and they would pay the price indirectly as money managers passed their increased trading costs through to clients.”