This tax, called a "Tobin Tax", after its creator, Nobel Prize winning economist James Tobin, would serve to disincentivize speculative activities:
Wall Street would bear the brunt of the latest tax proposal as Democrats jockey for the most progressive tax ideas with the approach of the 2020 elections.
Senator Brian Schatz, a Hawaii Democrat, is working on a plan that would tax financial trades, according to his spokesman, Michael Inacay, who declined to provide details on how, exactly, it would be structured.
Financial transaction taxes typically place a levy of a fraction of a percent on the price of a securities trade. The idea has gained popularity within the Democratic Party as a way to curb high-frequency trading as well as raise revenue for progressive policies such as free college tuition.
………
Senator Kirsten Gillibrand of New York, another 2020 presidential candidate, as well as Sanders, has backed plans that would tax financial trades. The revenue of a tax set at 0.1 percent of the value of a securities trade is estimated to raise about $777 billion over a decade, according to the Congressional Budget Office.
Overseas, the idea for a tax on financial trades in gaining steam. Stock buyers in Europe would pay a 0.2 percent tax under a plan that Germany and France proposed last month.
Of course, such a tax might not raise that much money, because it would serve to discourage reckless speculation.To quote Randall Munroe, "Mission f%$#ing accomplished.:
Assuming that it is properly structured, so, for example, short sellers would have to pay for each of their 4 transactions, (borrow, sell, buy, return) any revenue shortfall would be just fine with me.
0 comments :
Post a Comment