It makes sense to place the heaviest tax burden on those who benefit the most from government.
Tax the rich at a very high rate and government will shrink in size. Then the tax burden on everyone will fall.
I doubt that a transaction tax will accomplish that. Chances are a transaction tax would be as heavy a burden on small investors as on the huge institutions that have a hand in formulating public policy.
I am an advocate of a trading tax even back when George Bush Sr. sent out a trial balloon for one which, of course, was quickly shot down. (If I recall correctly the trial balloon lasted one day and was never heard from again ) Most on this board are opposed to ANY tax on trading which I fully understand, however, the tax would fall only on the user. Not unlike a gasoline tax, toll tax, telephone tax, etc. The tax need not be .0025% on the total transaction. Actually a flat fee user tax of say $20 per transaction would be acceptable to many I believe. With trillions of debt it is well understood taxes will be raised for the many. IMO this is one of the least egregious ways to raise revenue.
Good trading to all.
I agreed...let's tax the politicians.... they are the onc benefit the most from government.
something like this:
a. tax 1 bill for president
b. tax 1/2 bill for vice president
c. tax 100 mill for congress men/woman
Edited by fool_bush, 18 January 2009 - 10:01 PM.