Bernie Sander suggested a wonderful proposal, though it did not receive much attention, it should be discussed among people. Hillary Clinton can use it for her campaign. Putting a small tax on financial transactions could change many things. For instance, it would reduce the incentives for insider deal making, high speed trading and short term financial betting. Buying and selling of stocks for beating other competitors often leads to waste of resources. Why to put nation’s brightest minds behind something unnecessarily risky. Tax on financial transactions can help generate lots of revenue. Financial experts say, even a 1% transaction tax would lead to a $185 billion in just 10 years.
Hence, it would support public investment and enlarge the economic pie. Investments would include better access to colleges and schools. This tax will be fair enough as the Wall Street traders who pay no tax on the stocks and bonds they buy will also have to pay for it. They make up for 30% profit of America, but pay only 18% of corporate taxes. The percentage needs to be balanced out. Wall Street’s objection to the said tax is completely foolish. For several decades the UK was attacked on stock trades.
Still, the UK stands as one of the financial powerhouses of the world. There the tax raised through financial taxes is around 3 billion per year. For a economy like that of the US the compared amount would yield around 30 billion a year which is a huge amount. These kinds of taxes have helped Britain to a great extent in sustaining their budget. European Union is on its way to implementing such tax and many other countries already have one such tax. Hence, it can be a great help if the Wall Street trades are also taxable from now onwards.