MFA Statement on a Proposed Financial Transaction Tax in New Jersey
October 19, 2020
WASHINGTON, D.C. – Bryan Corbett, President & CEO of Managed Funds Association, issued a statement following the introduction of New Jersey Assembly Bill A4402 which would implement a new financial transaction tax:
“The proposed financial transaction tax will ultimately be paid by nearly 800,000 of New Jersey’s teachers, firefighters, and police officers who rely on their pensions for retirement. Pensions, foundations, and endowments depend on alternative investments to provide necessary returns to their beneficiaries in all market conditions. The proposed FTT will make this work more difficult, and studies show that FTTs don’t raise as much money as advertised.”
MFA also submitted testimony for the record before the New Jersey Assembly Committee on Financial Institutions and Insurance.
Recently published research completed by EY outlines the impact of an FTT on the securities industry in New Jersey. The report found that the securities industry employs more than 38,000 people and the industry supports an additional 90,000+ jobs in the state.
MFA represents the global alternative investment industry and its investors by advocating for public policies that foster efficient, transparent, fair capital markets, and competitive tax and regulatory structures. MFA supports member business strategy and growth via proprietary access to subject matter experts, peer-to-peer networking, and best practices. MFA’s more than 140 member firms collectively manage nearly $1.6 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time. MFA has a global presence and is active in Washington, London, Brussels, and Asia, supporting a global policy environment that fosters growth in the alternative investment industry.