Securities Transaction Taxes for U.S. Financial Markets
University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics
Centre for Economic Policy Research (CEPR); International Labour Organization (ILO) - Policy Integration Department
PERI Working Paper No. 20
This paper examines the viability of security transaction excise taxes (STETs) as one policy tool for promoting a more stable financial environment, specifically with respect to the U.S. economy. Contrary to a large recent critical literature, we show that a STET can be designed without creating large distortions between segments of the financial market. We also show that a modest STET for the U.S. - beginning with a 0.5 percent tax on equity trades and scaled appropriately for other financial instruments - would generate substantial new government revenues, on the order of $100 billion per year.
Number of Pages in PDF File: 46
JEL Classification: E47, G38
Date posted: January 14, 2003
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo6 in 0.281 seconds