Publication Date: February 2000
Publisher: Center for Economic and Policy Research
Author(s): Dean Baker
Research Area: Banking and finance
Keywords: Gambling tax; Social investment; Market efficiency
Coverage: United States
The vast majority of stock trades and other financial transactions are done by short term traders who hold assets for less than a year and often less than a day. These trades are essentially a form of gambling. This paper proposes a modest tax on these trades, 0.25 percent on the sale or purchase of share of stock, along with comparable fees for other assets.
Learn how to upload your organization's valuable work into PolicyArchive and share your works with researchers and policymakers around the world.