Bernie Sanders put forward his plan on a free college education written off the student debt that depends on financial operation tax. However, it can hurt American markets and investors.
“When you break down the actual impact of the financial-transaction tax proposal, the real burden gets placed on the savings community,” Kirsten Wegner, CEO of Modern Markets Initiative (MMI), commented on.
Such an announcement of Sanders is connected to a financial crisis when the Main Street saved the Wall Street. Now, the Wall Street has to show its well-known benevolence. The tax will consist of 0.5% tax on stock transactions, a 0.1% tax on bond trades, and a 0.005% tax on derivatives transactions.
Sanders is said to raise considerable income for governments and will manage high-frequency traders that could aid to allocate the wealth in the U.S.. Nevertheless, FTT does not tax banks but deals and furthermost will give the raised costs to the customers. It comprises 401k of retirement plans, 529 college savings plans and pension funds, investment mechanism that helps Americans keep and increase wealth.
“It’s ironic. It’s actually the teachers’ pension funds, university endowments and 529 plans that would be helping pay” for free college and student loan debt relief,” Wegner said.
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