A Wall Street sales tax—taxing financial transactions. A modest set of taxes on trades of stock, bonds, and derivatives could raise a vast amount of money—quite possibly more than $1 trillion over a decade. Virtually all the money would come from Wall Street since most people will cut back their trading in proportion to the increase in costs. In addition, a tax would reduce speculation and possible lessen the volatility in financial markets.
Impose a miniscule federal transaction tax on ALL trades of stock, commodities, futures contracts, default swaps, etc. Say one millionth of the value of the trade. Thus on a hundred million dollar deal, the tax would be $100 and hardly noticeable. But with trillions of dollars of daily transactions the amounts generated would be significant for the treasury and could replace other forms of taxation. And it would put the cost of funding our system on the major beneficiaries of our system.
THE 'EZ TAX': Champion the Financial Transactions Tax, not as the poorly-monikered, opposition-guaranteeing 'Robin Hood Tax,' but as the EZ Tax -- because that's what it is: easy! It's a tax on computer operations, not people, and the easiest-to-collect and most painless tax imaginable. While raising more than $1 trillion over a decade, reducing speculation, and lessening financial market volatility, as described by economist Dean Baker.