Sunday, March 17, 2013

tax wall street tranactions, a tiny bit

"The high-frequency traders that now dominate our markets would be hardest-hit by the tax. A top economist recently concluded that their lightning speed, algorithm-driven trading drains profits from traditional investors. And analysts fear that such mass trading strategies could lead to disaster if markets behave unexpectedly.
The new tax would discourage these kinds of trades, which would be a good thing.
Europe, at least, seems to agree. Eleven nations, led by the conservative German government, are on track to start collecting the tax by January 2014. Expected revenues: $50 billion per year."

This tiny tax of just 3 cents per $100 transaction not only raises revenue but also helps slow a dangerous Wall Street practice. Win win!  And just a tiny lose for the fat cats.

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