Dean Baker Has a Great Idea, But it Needs to go Further

Dean Baker suggests that we implement a stock transfer tax. He mentions that the UK has a stock transfer tax of 0.25%, and London is second only to New Work as one of the great financial capitols of the world.

He notes that it would generate $150 billion/year in revenue.

While I agree, I do not think that this goes far enough. It should apply to all financial transactions, stocks, bonds, derivatives, hedging, futures, etc.

I would have an exception for initial purchase, but not resale, of government bonds, but that's it.

In addition to generating a lot of revenue, it also makes increasing level of arbitrage increasingly more expensive, which is also a good thing.