The Truth About a Financial Transaction Tax

This week on 51/49, James explores the merits of a financial transaction tax (FTT), sometimes known as a "Wall Street Sales Tax", and debunks years of Wall Street propaganda and lies against such a proposal.

A Financial Transaction Tax is a tax on the buying and selling a stock, bond, or other financial contract like options and derivatives.

Proponents of financial transaction taxes say it’s a way to cut down on speculative behavior in the stock market, raise revenue, cut down on the type of speculation and “rent-seeking” that high-frequency traders engage in, and potentially cut down on the destabilization some say they cause in the market.”

Critics of the FTT (Wall Street think tank The Modern Markets Initiative CEO Kristen Wegner) say that it would harm retail investors (aka Main Street) by drive down stock prices making capital more expensive for firms, increase the bid-ask spread which reduces market liquidity and increases volatility.

So what's the truth?

0:00 Introduction
0:15 What is a Financial Transaction Tax?
1:45 Current and Past Applications of an FTT
4:17 Debunking the Myth: FTT is Bad for Main Street
7:39 Main Street's Perspective on a Tax on Wall Street
9:12 Conclusion

51/49 with James Li - Commentary on business, politics, and the other things (from an independent perspective)

Follow James on Twitter: https://twitter.com/jamesccli/
Subreddit link: https://www.reddit.com/r/5149withJamesLi/

-----

Fair Use Notice: This video may contain copyrighted material; the use of which has not been specifically authorized by the copyright owner. We are making such material available for the purposes of criticism, comment, review and news reporting which constitute the fair use of any such copyrighted material as provided for in section 107 of the US Copyright Law. Not withstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work for purposes such as criticism, comment, review and news reporting is not an infringement of copyright.