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Transactional tax.

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    The transactional tax can be the salvation of this country. Taxes are more important than a source of revenue. Taxes can define and create economic policy and reality. A high transactional tax levied against pure speculative positions will move money to jobs producing product making investments. In particular money invested in deals where the investor profits when the objective company declines should be excessively taxed or criminalized. There are a very small number of businesses subject to uncontrollable circumstances like the weather that should be allowed to benefit from negative eventualities. All other speculative trading should be penalty taxed. Money handlers always searching for profits would have to invest in jobs producing investments. The result would be prosperity.
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    Jared Bernstein, New York Times Opinion, July 22,2015: The Case for a Tax on Financial Transactions

    Bernie Sanders made the case for a financial transactional tax in 2015. Jared Bernstein was largely supportive, but said details need to be worked out.

    "Senator Bernie Sanders of Vermont, who is seeking the Democratic nomination for president, has done just that, by proposing a financial transaction tax: a small excise tax, typically a few hundredths of a percent, on trades of stocks, bonds, derivatives and other securities. An itty-bitty, one-basis-point transaction tax (a basis point is one-hundredth of a percentage point, or 0.01 percent) would raise $185 billion over 10 years, according to new estimates by the nonpartisan Tax Policy Center."

    He discusses it more in his NYT opinion article above. Seems like one good source of revenue to me.

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    "He discusses it more in his NYT opinion article above. Seems like one good source of revenue to me"

    I would like to see the tax large enough that money looks for another way to make a living.

    From the article:

    "One concern is that if we tax trades, we’ll get fewer trades, and less liquidity."

    Not true if tax is targeted.

    Income will be greater from money moved into product production instead of incremental profit taxing.

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    I’m against this until enforcement and compliance costs are estimated. My hunch is those costs will divert a lot of resources and that it would be easier to just declare certain trades illegal or ban “banks” from participating and throw people in jail (or receivership in the case of the corporate entity) when they break the law.
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    Carlitos Wrote: I’m against this until enforcement and compliance costs are estimated. My hunch is those costs will divert a lot of resources and that it would be easier to just declare certain trades illegal or ban “banks” from participating and throw people in jail (or receivership in the case of the corporate entity) when they break the law.

    Those trades were all illegal under New York state gaming laws until Gramm pulled the biggest swindle in the history of the world with the 2000 CFMA. Repeal the CFMA and recriminalize all the gambling the CFMA made legal. Rexamine and reapply trust laws. Put money back to work and the resulting prosperity will be overwhelming. The amount of criminality now SOP is unbelievable. Front running is blatant and for sale.

    e.g. :

    Charlie Munger: HFT is Legalized Front-Running - Barron's

    Barron's › articles › BL-SWB-27750


    May 3, 2013 · It's legalized front-running; I think it's basically evil and it should never have been able to reach the size that it did... why