Letter of the Day: Robin Hood tax
Published: Wednesday, February 6, 2013 at 7:00 p.m.
Last Modified: Wednesday, February 6, 2013 at 4:49 p.m.
Robin Hood tax
EDITOR: I took a walk with my dog on Robin Hood Lane. It made me recall that there is a novel way to raise revenue. It is something that also is suggested for stock exchanges in Europe, especially the Common Market countries.
How it works is simple. Each stock, bond or derivative transaction would involve a small bite that would go directly, no strings attached, to the U.S. Treasury. This might be only 50 cents on each trade. With the volume of business done each day, it could bring in as much as $350 billion in new revenue every 10 years.
One side-effect: The big boys — J.P. MorganChase, AIG and hedge funds — might have to think twice before executing the massive number of late-session trades that bring losses and volatility to Wall Street.
It is hoped that this rule might work to the benefit of new and small investors. Moreover, it would help us out of the trade imbalance/debt crisis and keep some of our hard-earned income right here in the U.S. where it belongs.
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