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View Diary: Part 7: Another reason to support The Robin Hood Tax (14 comments)

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  •  The crazy Transaction Tax idea continues. (0+ / 0-)

    Two points:

    1) There is no evidence (none, zip, nada) that high-frequency trading is bad. There is some scant evidence that it increases volitility, but that is not necessarily a bad thing.

    2) Even if if you choose to believe (without a shred of evidence) that high-frequency trading is bad, you have a simple solution...outlaw it. The SEC can do this by directive tomorrow if they wished. We would not have to:

     --- pass a new tax,
     --- get the new tax through Congress,
     --- lose the billions in taxes we collect from the securities industry when traders relocate to Dubai or Rio, or the Caymans.

    Once again, if you want to "tax the rich", let's just tax the rich! Raise the Income and Capital Gains tax rates.

    If we want to stop high-frequency trading, just outlaw it.

    Why do we need this silly and counter-productive Transaction Tax?

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