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MFA Testimony in Opposition to a Proposed New Jersey Financial Transaction Tax

MFA Testimony on a Proposed New Jersey Financial Transaction Tax Before the New Jersey State Assembly Committee on Financial Institutions and Insurance

On October 19, 2020 MFA submitted testimony for a hearing of the New Jersey State Assembly Committee on Financial Institutions and Insurance in regard to a proposed financial transaction tax. MFA outlined the important role that hedge funds and alternative investments play in the portfolios of institutional investors including pensions, foundations, and endowments. MFA member funds help institutions and their stakeholders honor pension obligations, and fund scholarships, and support charitable work in communities throughout New Jersey. The NJ Division of Investment invests nearly $5.5 billion in hedge funds to help secure the retirements of approximately 800,000 New Jersey teachers, fire fighters, police officers, and other public employees.

MFA’s testimony holds that a financial transaction tax will ultimately be paid by these investors and will harm the New Jersey economy. MFA’s testimony outlines four key points against the proposed tax:

  1. Financial Transaction Taxes Fail to Raise Significant Revenues
  2. Imposing a Tax on Financial Transactions Will Cost Jobs and Revenues
  3. FTTs Harm Pensions and Investors Saving for Retirement
  4. An FTT Will Not Produce Immediate Revenues