Financial Transaction Tax: How Wall Street can Pay for Its Mess"" "Sanders would tax Wall Street to pay for college" "How Bernie Sanders' Wall Street Tax Would Work" "Economist Argues 'Pie in the Sky' Sanders Will, in Fact, 'Make Economy Great Again'" The revenues from the tax, around $3.5 billion under current stock market conditions, would be shared equally by the governments of New York City and New York State. The proposal under consideration would reinstate the tax at half the rate that prevailed at its repeal. The authors consider a proposal to reinstate the New York stock transfer tax that was phased out between 19. They show that a STET can be designed without distorting financial markets, and that a modest STET for the U.S.-beginning with a 0.5 percent tax on equity trades and scaled for other financial instruments-would generate substantial new revenues, on the order of $100 billion per year.Įvaluation of a Proposal to Reinstate the New York Stock Transfer Tax The authors examine the viability of security transaction excise taxes (STET) as a policy tool for promoting a more stable financial environment in the U.S. Robert Pollin, Dean Baker and Marc Schaberg The authors update their calculations (from 2002, below) of the potential revenues that could be collected through a financial transaction tax, using a similar methodology. The Potential Revenue from Financial Transactions Taxesĭean Baker, Robert Pollin, Travis McArthur and Matt Sherman However, it would be unlikely to reduce market volatility and could even increase it. They conclude that a Tobin tax is feasible and could make a significant contribution to revenue without causing major distortions. They also review the literature on how a Tobin tax might be implemented, the amount of revenue that it might produce, and the likely incidence of the tax. ![]() The authors synthesize the literature about the impact of FTTs (or “Tobin” taxes) on market volatility. They examine the specifics of a bill supported by Senator Harkin and Congressman DeFazio, with a proposed FTT rate of 0.03 percent of the value of a trade, but find that it would generate far less revenue than a higher rate, such as the 0.5 percent FTT in place in the U.K. financial markets and elsewhere, in order to inform ongoing discussions as to the viability of establishing a financial transaction tax for U.S. Pollin and Heintz review recent evidence on trading costs and trading “elasticities” in U.S. Transaction Costs, Trading Elasticities and the Revenue Potential of Financial Transaction Taxes for the United States ![]() In this informal memo, Robert Pollin and James Heintz recommend appropriate tax rates for a financial transaction tax in the U.S., and offer their best estimate as to what the revenue potential would be from setting an FTT at those rates. Memo to Robin Hood Tax Coalition: Thoughts on Tax Rates and Revenue Potential for Financial Transaction Tax in U.S. FTT should also not produce significant negative effects on productive investment spending by U.S. FTT as being around $300 billion per year, which equals approximately 1.7 percent of current U.S. The authors conclude conservatively that the net revenue potential of this U.S. It focuses on analyzing the revenue potential of the Inclusive Prosperity Act that was first introduced into Congress in 2012. This paper by PERI Co-Director Robert Pollin, Associate Director James Heintz as well as Thomas Herndon, a PERI Research Assistant, estimates the revenue potential of a financial transaction tax (FTT) for U.S. Robert Pollin, James Heintz and Thomas Herndon The Revenue Potential of a Financial Transaction Tax for U.S.
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