What is a Financial Transaction Tax?
A tiny tax on Wall Street trading of 1% on transactions like stocks, bonds, foreign
currency bets and derivatives. Could raise $700 billion a year in the US. Well-tested,
cheap to implement and hard to avoid. In recent years, transaction taxes have been introduced very effectively in more than 40 countries around the world. It would raise up to $350 billion per year in US to rebuild Main Street and reduce financial speculation and automated trading.
What is taxed:
Stocks, securities, purchase of debt, options, credit swaps, foreign currency “bets”, and derivatives.
What is NOT taxed:
ATM Withdrawals, home mortgages issued to buyer, loans received, initial issuance of a stock or bond, short-term revolving loans, or 401K retirement accounts.
The stock exchange, the broker, or if neither is involved, then the institutional investor or day trader.