A mass rally recently held in Chicago sparked debate over a transactional tax on the financial community. A coalition of nurses’ unions and other activists gathered together to protest the vast wealth accumulating in securities. They are calling for a tax of 50 cents on every $100 in financial transactions handled by brokers.
Similar legislation introduced in Congress earlier this year would impose a tax of 3 cents on every $100 on most financial trades. At least a dozen countries levy a tax on financial transactions, but the U.S. hasn’t done so since 1966.
Note: Due to the expected sell-off in stocks at year-end, such a tax could create a windfall for the IRS.