While there are plenty of bright spots in the economy, there is reason to believe growth will once again slow down. One way to enlarge their sense of the possible: consider a source of revenue they have so far largely ignored – a small tax on sales of stocks, bonds, and complex financial instruments. How small? Really, really small. A bill co-introduced by Sen. Tom Harkin, D-Iowa, and Rep. Peter DeFazio, D-Ore., calls for a tax of 0.03 percent – that's 30 cents per $1,000. Yet even at that exceedingly modest level, a Wall Street speculation tax (also known as a financial transaction tax or FTT) would generate more than $350 billion over the coming decade, according to a non-partisan analysis of similar legislation introduced in 2012. What do you think of this idea?
"... consider a source of revenue they have so far largely ignored... IOW, "here's something we haven't taxed the shit out of yet, so let's tax it now"... LEFTISTS WANT TO TAX EVERYTHING! (Let's not forget the ramifications of King George III's, "stamp act" tax.) Just more Leftist "tax and spend" BS! Bad idea!
I think it's a terrible idea. Of course a rep from Iowa and Oregon want a financial tax. How about a tax on the farmers? They want to tax what their residents don't pay. We can also save money by stopping subsides to their farms, but that will never happen. We need to keep our markets efficient. Theses types of transactions taxes are just another way to transfer wealth from savers and those with money to pay for programs that have nothing to do with the markets. Fees from the markets should be used to regulate and protect the health the markets, not to pay for other spending. BTW, there is already a SEC Section 31 fee on all sales of securities, but that money goes to the SEC. I would support a small increase to the NFA fee of $0.01/contract (Which was $0.02 last year), if all the money went toward a SIPC type fund to protect seg accounts. Sorry, I just really hate this idea. Just MO. Bob
It's not only a horrible idea on the face of it, but it represents a very dangerous slippery slope. Just look at the history of income taxation in the US: It was microscopic when it started and now look where we are. Once it's in place, no matter how small it starts, it will never go away and will only increase over time.
I think some stupid lawmakers think that investors are fools who would recklessly throw away their hard earned money no matter what. Or maybe they think that investors are compulsive gamblers who can be easily fleeced by the government. But what does that make the government then? A casino?
Sure -- if no one changed his behavior in response to the tax... Are the guys who put out this sort of "analysis" stupid, or venal? Hard to tell.