For Immediate Release: March 5, 2019
Washington DC — The Center for Economic and Policy Research (CEPR)’s Senior Economist, Dean Baker, issued the following statement regarding financial transaction tax bills introduced to the House and Senate today:
"The Wall Street Tax Act, introduced today in the Senate by Sen. Brian Schatz (D-HI) and it's companion bill, the Putting Main Street First Act, introduced by Rep. Peter DeFazio (D-OR), would make our financial sector more efficient while raising a significant amount of revenue."
"This small tax of just 10 cents on every $100 of trades would discourage disruptive short-term trading without impacting the market's ability to finance productive investment. The financial industry would bear almost all of the cost of the the tax. Every day investors and retirees would save money as a result of lower fees from reduced trading.
"At a time when members of Congress are exploring ways to tax the wealthy and fight income and wealth inequality, a financial transactions tax that discourages pointless trading, is targeted at the financial industry and frees up resources for other spending, is a welcome policy tool."