Can a Financial Transactions Tax Work in America? An FTT FAQ


Truth Out has the article Can a Financial Transactions Tax Work in America? An FTT FAQ.

A financial transactions tax is a small tax on financial transactions. One long-standing form of an FTT is the local real estate transfer tax that most Americans pay when buying or selling a house.
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Most concrete proposals for an FTT include an FTT on stocks and bonds of 0.5 percent or less of the amount traded and an FTT on foreign currencies and derivatives of 0.1 percent or less of the amount traded.
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A well-designed FTT would discourage speculation and computer-driven high frequency trading in financial instruments. That would reduce market volatility and increase access to capital markets for ordinary borrowers and investors. Even if an FTT raised no money, it would still improve the economy.

This sounds like such a good idea that you know it doesn’t have a snowball’s chance in summer.

The talk about how the tax works in London does not seem to acknowledge what I have heard.  One of Great Britain’s strongest issues with European Common Market proposals is the argument over an FTT.  They claim that such a proposal is an attack on the London financial center.  I’ll have to look into this.

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