Financial Transaction Tax: Analysis of a Financial Transactions Tax (FTT)

Key Findings

• A broad-based financial transaction tax (FTT)­ in the United States would be a substantial revenue source. For example, the Inclusive Prosperity Act proposed by Sen. Bernie Sanders (I-VT), with an FTT levied at 0.5 percent on stocks, 0.1 percent on bonds, and .005 percent on derivatives, has been estimated to raise between approximately $60B and $220B annually.
• An FTT would raise both explicit and implicit transaction costs, decreasing trading volume and lowering asset prices. The decrease in trading volume would reduce…