In an Op-Ed column in this morning's New York Times, columnist Bob Herbert proposes a 0.25% transaction tax on all securities transactions. Mr. Herbert writes that, "the fees would raise a ton of money, perhaps $100 billion or more annually." And exactly where would all that money come from? Who cares, right? Mr Herbert goes on to say that while the expense would be trivial for individual investors, they could "amount to a big deal for speculators."
Once again, it all comes down to the evil speculators. Without even getting into why the majority of this tax burden would end up being borne by the general public, do we really want to put regulations into place that discourage any of the remaining liquidity in our financial markets?
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