A financial transaction tax would help ensure Wall Street works for Main Street
Josh Bivens and Hunter Blair – Economic Policy Institute, July 2016
The report argues that the U.S. economy is still recovering from the financial crisis of 2008. The financial transactions tax (FTT) would help ensure the financial sector compensates other sectors of the economy (particularly U.S. households) for the damage the sector inflicted.
Through generating tax revenues, decreasing the fees Americans pay on their investments, and shrinking unproductive parts of the financial sector, an FTT would help Wall Street work for Main Street.
Read the full report here
A summary of the report:
1. A well-designed FTT on the sale of stocks, bonds, derivatives, and other investments would be an efficient and progressive way to generate tax revenues.
2. The report analyses conservative and higher revenue projections
3. Regardless of the level of revenues raised, an FTT would be a win-win for the U.S. economy.
4. Higher revenues would result in more funds for social insurance programs and much-needed public investments.
5. Lower revenues would be the result of the FTT crowding out financial transactions of little value to the U.S. economy. This would boost Americans’ incomes through lowering fees on financial services, such as the management of 401(k)s and other accounts.