Considering a Financial Transactions Tax
If implemented properly, the duty could potentially help everyday investors.
An Income-Tax Rebate
To forestall the complaints: This column intends to save you money. (Or your clients, if you are a financial advisor.)
Historically, proponents of financial transaction taxes--that is, tariffs on investment trades--have advocated their positions to punish Wall Street, to increase federal revenues, and/or to discourage what they view as excess trading. The first two reasons inspired Bernie Sanders and Elizabeth Warren to offer FTT proposals, while the latter prompted Jack Bogle to state in 2011 that FTT was “an idea whose time has come.”
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.