SEC and SIFMA Submit Statements on FY 2015 Budget Proposal

Representatives from the SEC and SIFMA released statements on the President's proposed FY 2015 budget.

SEC Chair Mary Jo White stated that she is pleased with the President's request for $1.7 billion for the SEC in that it "recognizes the SEC's need for significant additional resources." Additionally, Chair White stated that it is important to point out that the funding "comes from industry transaction fees and does not take money away from other priorities or contribute to the federal deficit."

SIFMA CEO and President Kenneth E. Bentsen's statement outlined his concerns with several components of the proposal. According to Bentsen, a "tax on financial institutions continues to be an ill-timed and ill-considered concept," and imposing such a tax "ultimately is a tax increase on individual investors and users of capital to the detriment of the economy." Specifically, Bentsen stated that the 28-percent cap on tax preferences will impose a tax on municipal bonds which could discourage investment in key infrastructure projects and restrict capital to state and local governments. Bentsen also voiced concerns with the treatment of financial products, stating that the mark-to-market proposal "could reduce incentives for savings and investment, specifically regarding assets outside retirement accounts," and expressed additional concerns with the impact of the independent contractor provisions on independent financial advisors.

See: SEC Chair White's Statement; SIFMA President Bentsen's Statement. Related news: SIFMA Issues Statement Regarding Municipal Bond Provisions in House Tax Reform Proposal (March 3, 2014).