404:
383:
According to Irene
Aldridge, there is also concern about the reduced return on investment for individuals, the higher spreads and volatility in the market, and possible increased banking fees, which will need to be increased in order for banks to cover the higher risk associated with holding stocks,
65:
The US imposed a financial transaction tax from 1914 to 1966. The federal tax on stock sales of 0.1 per cent at issuance and 0.04 per cent on transfers. Currently, the US has a very minor 0.0034 per cent tax which is levied on stock transactions. The tax, known as
Section 31 fee, is used to support
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100 financial security jobs are estimated to support 27 to 37 jobs in the retail sector, 72 to 91 jobs in the business services sector (think staples and copy machines), 79 to 112 jobs in the services sector (like dentists, nurses and gas station operators), and 5 to 12 restaurant and pub workers.
87:
in 2009. He first raised the idea earlier in 2009, and then officially introduced it as a bill on
December 3, 2009. The day he introduced the bill, DeFazio said, "The American taxpayers bailed out Wall Street during a crisis brought on by reckless speculation in the financial markets. . ... This
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transactions. Its official purpose is "to fund job creation and deficit reduction." Projected annual revenue is $ 150 billion per year, half of which would go towards deficit reduction and half of which would go towards job promotion activities.
284:
article by
Richard T. Page, who has suggested that imposing a financial-transactions tax in response to the 2007-2010 economic downturn would be "foolish revenge". Page has instead lent lukewarm support to President Barack Obama's
579:
297:
On
December 8, 2009, criticism came from Burton G. Malkiel and George U. Sauter. Some empirical researchers have expressed concern that financial transaction taxes would in practice become entirely
674:
345:
unprofitable since they depend on the thinnest of profit margins. Trading volume would collapse, and there would be a dramatic shortfall in the tax dollars actually collected by the government.
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where a contract is swapped through a series of payments in exchange for a payoff if a credit instrument (typically a bond or loan) goes into default would also pay a 0.02 percent levy
642:
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Another bill, which remains a proposal, was tabled by DeFazio on
February 13, 2010. It is called "H.R.1068 - Let Wall Street Pay for Wall Street's Bailout Act of 2009."
370:, Irene Aldridge, argued that a financial transaction tax proposed in the US would lead to job losses in non-financial sectors of the economy through the so-called
42:
bill entitled H.R. 4191: Let Wall Street Pay for the
Restoration of Main Street Act of 2009. It is a proposed piece of legislation that was introduced into the
89:
379:
Even the smallest FTT that reduces transaction volume by as little as 10% will, according to
Schwabish, result in the loss of over 30,000 jobs just in NYC.
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between two firms on certain benefits of one party's financial instrument for those of the other party's financial instrument would pay a 0.02 percent tax
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To ensure the tax is appropriately targeted to speculators and has no impact on the average investor and pension funds, the tax will be refunded for:
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forwarding in a magnified form any taxes imposed on Wall Street employees through their reduced demand to their suppliers and supporting industries:
70:(SEC). In 1998, the federal government collected $ 1.8 billion in revenue from these fees, almost five times the annual operating costs of the SEC.
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legislation will force Wall Street to do their part and put people displaced by that crisis back to work." The "bailout" he referred to was the US
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Wall Street" would not foot the bill for the presumed $ 150 billion tax. In fact, the tax would simply be added to the cost of doing business,
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to buy or sell a specified commodity of standardized quality at a certain date in the future, at a market determined price would be 0.02 percent
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On
December 21, 2009, a financial industry representative, a managing partner at a New-York-based hedge fund and an author of a book on
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op-ed by Burton G. Malkiel and George U. Sauter; (2) a
December 2009 online op-ed by Irene Aldridge; and (3) a December 2010
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493:"Foolish Revenge or Shrewd Regulation? Financial-Industry Tax Law Reforms Proposed in the Wake of the Financial Crisis?"
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Professor Malkiel argued that taxing speculators would reduce market efficiency, harming the economy:
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96:. The day the bill was introduced, it had the support of 25 of DeFazio's House colleagues.
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http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_201-250/WP212.pdf
458:"Text of H.R. 4191: Let Wall Street Pay for the Restoration of Main Street Act of 2009"
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transactions would be assessed a tax of one-quarter-of-one percent (0.25 percent)
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the first $ 100,000 of transactions annually that are not already exempted
643:"Potential and Unintended Consequences of the Financial Transaction Tax"
576:"DEFAZIO INTRODUCES LEGISLATION INVOKING WALL STREET 'TRANSACTION TAX'"
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and several publications on mutual fund performance, predicted that:
540:"DeFazio calls for tax on financial transactions but critics abound"
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For the more general category of "financial transaction taxes", see
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all investors would pay significantly higher costs on their trades
218:
456:
GovTrack - A civic project to track Congress (December 3, 2009).
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all of which will have detrimental effects on the "main street".
510:"Equitable Equity: India Introduces Securities Transaction Tax"
309:, rather than merely creating distortions and reducing market
606:
Burton G. Malkiel and George U. Sauter (December 8, 2009).
47:
36:
Let Wall Street Pay for the Restoration of Main Street Bill
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Criticism of this bill has included (1) a December 2009
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United States proposed federal taxation legislation
333:, including 401(k) plans, IRAs and mutual funds.
8:
608:"A Transaction Tax Would Hurt All Investors"
90:Emergency Economic Stabilization Act of 2008
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531:
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341:Transactions taxes would make most current
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634:
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578:. Website of Peter DeFazio. Archived from
92:, and the "crisis" he referred to was the
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104:These are the elements of his proposal:
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46:on December 3, 2009 to assess a tax on
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44:United States House of Representatives
40:United States House of Representatives
7:
641:Irene Aldridge (December 21, 2009).
428:Financial Crisis Responsibility Fee
287:Financial Crisis Responsibility Fee
388:Another bill introduced by DeFazio
68:Securities and Exchange Commission
25:
538:Charles Pope (December 3, 2009).
321:, author of classic finance book
293:Criticism from Malkiel and Sauter
18:DeFazio financial transaction tax
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248:tax-favored retirement accounts
38:is officially contained in the
323:A Random Walk Down Wall Street
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362:Criticism from Irene Aldridge
680:Finance in the United States
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515:. p. 4. Archived from
499:191, 193-94, 205-14 (2010).
66:the operation costs of the
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418:2007–2008 financial crisis
257:education savings accounts
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110:Financial Transaction Tax
94:2007–2008 financial crisis
26:
423:Financial transaction tax
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81:financial transaction tax
29:financial transaction tax
301:, ultimately increasing
108:Revenue Estimate for US
331:burdening all investors
317:Professor of Economics
260:health savings accounts
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368:high-frequency trading
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335:
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343:high-frequency trades
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77:Peter Anthony DeFazio
670:Financial regulation
315:Princeton University
238:Credit default swaps
616:Wall Street Journal
582:on 25 December 2018
275:Wall Street Journal
130:US stocks/equities
111:
74:U.S. Representative
645:. Advanced Trading
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34:The proposed bill
491:Richard T. Page,
372:multiplier effect
353:would widen, and
351:bid–offer spreads
319:Burton G. Malkiel
303:transaction costs
281:Tulane Law Review
226:futures contracts
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16:(Redirected from
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347:Market liquidity
313:. For instance,
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125:(US$ billion)
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83:for within the
79:proposed a new
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152:US forex spot
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647:. Retrieved
619:. Retrieved
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584:. Retrieved
580:the original
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548:. Retrieved
517:the original
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497:Tul. L. Rev.
462:. Retrieved
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410:Banks portal
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649:13 February
621:13 February
586:13 February
464:13 February
224:The tax on
174:US options
163:US futures
664:Categories
550:2010-01-04
460:. GovTrack
444:References
311:efficiency
268:Evaluation
54:securities
438:Tobin tax
307:investors
185:US swaps
141:US bonds
123:estimate
118:Tax rate
115:Tax base
396:See also
203:US total
121:Revenue
100:Elements
251:401(k)s
210:123-246
136:54-108
61:History
191:23-46
188:.015%
147:26-52
520:(PDF)
513:(PDF)
232:Swaps
219:Stock
169:7-14
166:.02%
158:8-16
155:.01%
144:.02%
133:.25%
651:2010
623:2010
588:2010
466:2010
180:4-8
177:.5%
495:85
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631:^
614:.
610:.
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48:US
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31:.
20:)
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