MMI’s latest study on the impact of the Financial Transaction Tax (FTT) reveals a definitive conclusion:

The proposed FTT is a Retirement Tax on American savers.

Middle class Americans saving for college, retirement and other life milestones would see a backbreaking tax bite if federal proposals to tax stocks, bonds and derivatives investments are enacted.

The findings highlight the devasting impact this tax would have on American savers, including:

  • $5 million to $19 million in annual FTT on for an average state 529 College Savings plan with $12 billion AUM, or the equivalent of a year of full in-state tuition for over 440 to 1,900 students at a public university.

  • $840,000 to $24 million in annual FTT for a single public university endowment (depending on AUM), or the equivalent of nearly 3,500 college scholarships each year.

  • $45,000 to $65,000 in FTT over the lifetime of a 401(k) account, or the equivalent of delaying the average individual’s retirement by approximately two years.

  • Over $75 million to $100 million in annual FTT for the typical state public pension plan with approximately $2 billion to $80 billion AUM.

View the full report, A Study on the Effects of a Retirement Tax/Financial Transaction Tax on Retirement Security, College Savings and University Investments, below:

Read the 2021 Study on the Impact of the ‘Retirement Tax’ PDF