Securities Transaction Taxes for U.S. Financial Markets

Robert Pollin (), Dean Baker and Marc Schaberg
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Robert Pollin: Department of Economics and Political Economy Research Institute (PERI), University of Massachusetts, Amherst

Eastern Economic Journal, 2003, vol. 29, issue 4, 527-558

Abstract: This paper examines the viability of security transaction excise taxes (STETs) as one policy tool for promoting a more stable financial environment, specifically with respect to the U.S. economy. Contrary to a large recent critical literature, we show that a STET can be designed without creating large distortions between segments of the financial market. We also show that a modest STET for the U.S.—beginning with a 0.5 percent tax on equity trades and scaled appropriately for other financial instruments—would generate substantial new government revenues, on the order of $100 billion per year.

Keywords: Financial Market; Securities (search for similar items in EconPapers)
JEL-codes: F3 G12 G13 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:29:y:2003:i:4:p:527-558

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