Last week, Representative Peter DeFazio reintroduced his financial transactions tax (FTT) proposal. The bill would impose a tax 0.03 percent on trades of stock, bonds, options, and other derivative instruments. (That's 3 cents on $100 of trades.) This can be thought of as the equivalent of a sales tax imposed on financial transactions, which are now largely untaxed.
Anyone doubting the wisdom of such a device (I'll not specify the price) should read Micheal Lewis' Flash Boys (2014) to get a clue about the insanity of the electronic trading rodeo (the rules of which are more like get in and out in eight nanoseconds). While trading may be a net zero sum game in theory, the panic aversion triggers built into the algorithms fail abysmally as has been shown by electronically induced flash crashes. Some friction added into the trading frenzy would require that more long-term "thinking" be incorporated into trading decisions. A more stable market would be the theoretical result. Maximum "happiness" until climate change, nuclear exchange, or comet of sufficient range declares end of game or the human soul is de-commodified.
The best fixes have always been obvious, and therefore always obfuscated by the Deregulated Media Owning .01%.
Transaction Tax, no Cap on Social Security Contributions,