Wednesday, February 17, 2016

Taxing Wall Street Will Have Consequences

News
Proponents claim the tax would collect tens of billions of dollars, discourage speculative and high-frequency trading, and make markets safer and less volatile.

Proponent clearly doesn't mean someone that understands money and Wall Street. Speculative and high-frequency trading would move outside the United States. This would alter capital flows and send millions of jobs overseas. Sound familiar? Most Americans recognize it as outsourcing to China or Mexico (1). It's the reason why tax inversions, the changing of tax domiciles through acquisition, is becoming a regular staple of financial headlines.

While these moves are driven by taxation, the purview of the public sector, Americans continue to point the finger of blame at the corporations. This will change after 2017. Either the younger generation learns this by education or the school of hard knocks.

Headline: What would Bernie Sanders' Wall St. tax look like?

Bernie Sanders wants to raise a lot of money from Wall Street.

Mr. Sanders's plan isn't to ask Wall Street for money. It's to demand it in the form of a financial-transaction tax.

Proponents claim the tax would collect tens of billions of dollars, discourage speculative and high-frequency trading, and make markets safer and less volatile. Its opponents say the revenue estimates are overstated and the tax will actually make markets more volatile.


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