A Very Broad Transaction Tax Might Have Merit

A transaction tax is one of those ideas that keeps popping up.  Earlier this month, Representative Peter DeFazio (D-OR) introduced a bill - Finishing Irresponsible Reckless Speculatnetive Trading - that would apply a tax of 3 basis points (.03%) to most financial trading including stocks, bonds and other transactions. The Joint Committee on Taxation estimates that the bill would raise $417 billion over ten years.  The legislation has support from the AFL-CIO, Americans for Financial Reform, the Center for Economic and Policy Research, the Communications Workers of America, and Public Citizen.