• DOI:10.2139/ssrn.333742
• Corpus ID: 15430399

Securities Transaction Taxes for U.S. Financial Markets

@article{Pollin2001SecuritiesTT,
  title={Securities Transaction Taxes for U.S. Financial Markets},
  author={Robert Pollin and Dean Paul Baker and Marc Schaberg},
  journal={Corporate Finance: Governance},
  year={2001}
}

• R. Pollin, D. Baker, Marc Schaberg
• Published 2001
• Economics
• Corporate Finance: Governance

This paper examines the viability of security transaction excise taxes (STETs) as one policy tool for promoting a more stable financial environment, specifically with respect to the U.S. economy. Contrary to a large recent critical literature, we show that a STET can be designed without creating large distortions between segments of the financial market. We also show that a modest STET for the U.S.—beginning with a 0.5 percent tax on equity trades and scaled appropriately for other financial instruments—would generate substantial new government revenues, on the order of $100 billion per year.