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View Diary: ACT UP and Occupy Team Up to Fight Wall Street (7 comments)

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  •  Horance - I am confused (4+ / 0-)
    Recommended by:
    Lying eyes, laserhaas, erush1345, FG

    If program trading is finding miniscule arbitrage opportunities and cashing them in any transaction tax that exceeded the spread would stop those transactions. While that's a good thing it would not generate any revenue because those trades would stop. I don't see how any transaction tax that could generate hundreds of billions of additional tax revenues would not impact the US capital markets driving trades to other countries. There are a few markets that have implemented small transaction taxes, how much revenue have they generated and how much trading volume have they lost?

    I favor a world wide uniform transaction tax and the EU proposed one last year that the US should have embraced. It would have included the US, UK, and all the EU markets. Those three groups are the largest financial markets in the world and if they acted together could likely get Japan and Hong Kong to join as well. If everyone was charging the same tax it would not disrupt trading patterns and all participants would raise needed tax revenues.  

    "let's talk about that"

    by VClib on Thu Apr 05, 2012 at 07:43:15 PM PDT

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