News | 03.06.19
Democrats Aim for Financial Transactions Tax
Sen. Brian Schatz (D-HI) and Rep. Peter DeFazio (D-OR) have introduced a measure that would impose a 0.1 percent tax on financial transactions such as stock purchases and derivatives trades. Advocates for the tax say the purpose of the proposal goes beyond the revenue it would raise. Because the tax would increase the cost of high-speed trading, it would likely reduce transaction volume and curb some speculation. Modern Markets Initiative, a lobbying group for high-frequency traders, has argued that a tax on transactions would lead to wider “bid-ask spreads, which would ultimately increase costs for ordinary investors, who would pay more each time they bought or sold shares.
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