Taxing Financial Transactions is a Bad Idea
3 Pages Posted: 20 Dec 2011
Date Written: December 19, 2011
There have been a number of proposals lately to impose a new tax on securities or financial transactions, both as a revenue measure and a way of disciplining Wall Street speculation. This article argues that such a tax would be a bad idea and that it makes more sense to tax financial activities rather than transactions.
Keywords: financial transactions tax, securities transactions tax, Tobin tax
JEL Classification: H20, K34
Suggested Citation: Suggested Citation