Note Wikipedia has added a broader financial transaction tax page, in addition to the Tobin tax page, so we should keep an eye on this one too. http://en.wikipedia.org/wiki/Financial_transaction_tax
From that same page, here is the summary of the Swedish experiment. Note the final conclusion, which makes perfect sense. The gaping hole in an FFT proposal is that a tax will put a severe damper on the very activity from which the tax proposes to create income. And further, the taxes that the government receives from trading income will be cut substantially, wiping out any possible gains that might still remain from the FFT tax. It is completely convoluted logic, which is demonstrated by the Swedish experience. This is excellent material to be used in postings to news sites that bring up the subject of the FFT. >> In January, 1984, Sweden introduced a 0.5% tax on the purchase or sale of an equity security. Hence a round trip (purchase and sale) transaction resulted in a 1% tax. In July, 1986, the rate was doubled, and in January, 1989, a considerably lower tax of 0.002% on fixed-income securities was introduced for a security with a maturity of 90 days or less. On a bond with a maturity of five years or more, the tax was 0.003%. Analyst Marion G. Wrobel prepared a paper for Canadian Government in July, 2006, examining the international experience with financial transaction taxes, and paying particular attention to the Swedish experience. [7] The revenues from taxes were disappointing; for example, revenues from the tax on fixed-income securities were initially expected to amount to 1,500 million Swedish kroner per year. They did not amount to more than 80 million Swedish kroner in any year and the average was closer to 50 million.[8] In addition, as taxable trading volumes fell, so did revenues from capital gains taxes, entirely offsetting revenues from the equity transactions tax that had grown to 4,000 million Swedish kroner by 1988. [9]
thank you for the compliment...I take great pride in digging out 'The Swedish experience' and posting on Wikipedia... I wish my trading was as good as my work fighting the FTT!
We can also update that page with links to anti-tax articles. Links to Mr. Green's petition as well as his blog is a possibility too. Don't like this thread though.
My congressman, Mike Rogers of Michigan, he's a republican. January 5, 2010 Dear Mr.: Thank you for taking the time to contact me regarding your concern with reports of a proposed "transaction tax" on all securities transactions. It is good to hear from you. As you may know, Representative Peter DeFazio of Oregon has introduced H.R. 4191, the Let Wall Street Pay for the Restoration of Main Street Act. This legislation would create a new "excise tax" on the purchase and sale of a wide variety of financial products, including stocks, futures and options. As a strong opponent of the Wall Street bailouts, I can understand the desire to return some of the money taxpayers have spent on Wall Street to the taxpayer. However, this bill will only create new taxes on virtually every American, without doing anything to change how Wall Street operates or how Washington D.C. spends your tax dollars. I am adamantly opposed to any "transaction tax" on securities transactions. At a time when many Americans are struggling to restore their savings and investments, a tax on their efforts would be unfair. Again, thank you for taking the time to contact me. Please keep in touch. Mike Rogers
My Active Trader magazine article on this tax is out now in Feb issue. pr release goes out tomorrow. Senator Sherrod Brown D-OH is a sponsor on Senator Harkin's trans tax bill. I recall Sen. Brown answering our petition letter with some understanding and vague support. Yet he sponsor's Harkin's bill? OH petition signers should call him out on this pandering to petition signers.
Thought today. We need a good recovery on Main Street, especially if banks and Wall Street - which includes hedge funds and all financial services - continues it's strong recovery. Greenspan said recently that we have two divergent economies. I call it a 'tale of two cities.' If we have a W recession on Main street but not on Wall Street, all the logic in the world won't be able to fend off a Wall Street tax in the form of a fin trans tax. It will be perceived as the only bridge between the tale of two cities. Populism and revolutions always overshoot with unintended consequences but the public fury can't help itself. Wall Street better help Main Street as we are joined at the hip. We can't count on government central planning to fix Main Street. It's time for our financial wizards on Wall Street to think outside the box. Thumbed on iPhone