When financial markets work too well: A cautious case for a securities transactions tax

  title={When financial markets work too well: A cautious case for a securities transactions tax},
  author={Lawrence H.l Summers and Victoria P. Summers},
  journal={Journal of Financial Services Research},
Unlike most major industrialized nations, the United States does not impose an excise tax on securities transactions. This article examines the desirability and feasibility of implementating a U.S. Securities Transfer Excise Tax (STET) directed at curbing excesses associated with short-term speculation and at raising revenue. We conclude that strong economic efficiency arguments can be made in support of a STET that throws “sand into the gears,” in James Tobin's (1982) phrase, of our… 

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