Wed Nov 28, 2012, 09:55 AM
Pryderi (6,652 posts)
Financial Transaction Tax and the Fiscal Curb
Any chance the democrats would throw this idea into the negotiating mix on the fiscal curb?
History of the concept
3 replies, 1200 views
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Replies to this discussion thread
Financial Transaction Tax and the Fiscal Curb (Original post)
Response to Pryderi (Original post)
Wed Nov 28, 2012, 12:27 PM
Trillo (9,148 posts)
2. Bank transaction tax?
From your link:
Bank transaction tax
Don't forget there are also private "fees" associated with the use of these things. A danger in them being "private" is that use of a national currency naturally concentrates profit in the hands of those charging debit card transaction fees.
A tax is presumably different from a fee, in that a tax goes to the government, potentially benefitting all of us (in a "perfect" world).
There certainly is an argument for folks to not keep their money in a bank, or if they receive a check, to cash it in its entirety, and just use that instead of debit cards. Additionally, with the use of debit cards, there's the third party who observes the transaction, and accumulates this as a data point in their private database, which can be another source of income for them.
Response to Trillo (Reply #2)
Wed Nov 28, 2012, 02:22 PM
Pryderi (6,652 posts)
3. No. Only on stock transactions. More from the link:
John Maynard Keynes was among the first proponents of a securities transaction tax. In 1936 he proposed that a small tax should be levied on dealings on Wall Street, in the United States, where he argued that excessive speculation by uninformed financial traders increased volatility. For Keynes, the key issue was the proportion of ‘speculators’ in the market, and his concern that, if left unchecked, these types of players would become too dominant. Keynes writes: "The introduction of a substantial Government transfer tax on all transactions might prove the most serviceable reform available, with a view to mitigating the predominance of speculation over enterprise in the United States. (1936:159-60)"
The US imposed a financial transaction tax from 1914 to 1966. The federal tax on stock sales of 0.1 per cent at issuance and 0.04 per cent on transfers. Currently, the US has a very minor 0.0034 per cent tax which is levied on stock transactions. The tax, known as Section 31 fee, is used to support the operation costs of the Securities and Exchange Commission (SEC). In 1998, the federal government collected $1.8 billion in revenue from these fees, almost five times the annual operating costs of the SEC.
We should raise it back up to 0.1 per cent from the current 0.0034.
It would be a source for revenue.