To: President Donald Trump, The United States House of Representatives, and The United States Senate
The Robin Hood tax
Recently I heard about a possible new federal revenue-raising law called “the Robin Hood Law.” It is something the bumptious politicos in Washington, much less the “NYSE,” certainly will oppose. At least at first anyway. It is something that has been suggested for stock exchanges in Europe, especially the Common Market countries. How it works is quite simple.
Each new stock, bond and derivative transaction would involve a VERY SMALL new tax which would go directly, no stings attached, to the US Treasury. This new tax might only be up to fifty cents on each separate trade. With the huge volume of business done each day, it could bring in as much as $350 billion dollars in new revenue each year.
One desirable side effect would be that the big boys- the J.P. Morgan Chase’s of this world and hedge funds (together with all their henchmen)-and their like would have to think twice before executing the massive amount of late-session trades which have brought on so much volatility to Wall Street recently. It is hoped that this new tax might even work to the benefit of very small investors, such as yours truly and others!
Finally, it might help us out of the trade imbalance and keep some of our own hard-earned money right here in the US, where it belongs.
Frank Baumgardner
Each new stock, bond and derivative transaction would involve a VERY SMALL new tax which would go directly, no stings attached, to the US Treasury. This new tax might only be up to fifty cents on each separate trade. With the huge volume of business done each day, it could bring in as much as $350 billion dollars in new revenue each year.
One desirable side effect would be that the big boys- the J.P. Morgan Chase’s of this world and hedge funds (together with all their henchmen)-and their like would have to think twice before executing the massive amount of late-session trades which have brought on so much volatility to Wall Street recently. It is hoped that this new tax might even work to the benefit of very small investors, such as yours truly and others!
Finally, it might help us out of the trade imbalance and keep some of our own hard-earned money right here in the US, where it belongs.
Frank Baumgardner
Why is this important?
Volitility, or frequent up or down changes in stock prices, adversely affects, almost every individual who has money invested on Wall Street. This small tax on each transaction would both raise as much as three hundred and fifty billion dollars in new revenue AND make hedge fund managers and others think twice before they manipulate security deals.