Quote from wjk:
The politicians will not be concerned with traders who are actually ethical and about business. They will seek to punish all because that's what the uneducated masses want.
Such legislation doesn't just tax TRADERS, but also INVESTORS . . . . with the twisted DeFazio "logic" of having to create some way to raise revenues in order to pay for the $700 billion dollar "Wall Street" bail-out.
As a result, the "Little Guy" gets screwed as well ( unless they impose some sort of a back-ended tax based on your holding period ).
I still don't think any kind of tax like this will fly. Moreover, half of that $700 billion is going to wind-up being spent in a much different manner than the "top-down" direct investment approach that Paulson used.
Larry Summers ( and others ) are bright enough to know that a transaction tax will distort the market. Even Dean Baker ( the economist that the NY Times writer Bob Herbert cites ) knows full well that Summers has yet to advocate any policies that would cause serious pain to Wall Street.