Poor Proposal

bern Senator Sanders’ proposal of a 1% roundtrip tax on stock trades will raise less revenue than expected, as some trading will migrate to areas with no tax. Moreover, because it increases transaction costs, it will reduce trading and liquidity and thus probably increase volatility; there’s no evidence it reduces bubbles. Lastly, even buy-and-hold investors will be hurt, as the mutual funds they invest in pass the higher trading costs on.

Share This Post
Facebook Twitter Email

Speak Your Mind


This site uses Akismet to reduce spam. Learn how your comment data is processed.