IPS– In an open letter published Thursday, 52 professionals from the financial sector urged the U.S. Congress to pass legislation mandating a tax on financial transactions.
The tax would cover stock trading, derivatives and other financial instruments, but, proponents say, would have a significant impact only on so-called high-frequency trades, in which computer-driven speculators typically hold stocks for mere milliseconds.
“These taxes will rebalance financial markets away from a short-term trading mentality that has contributed to instability in our financial markets,” the letter stated. “The primary role of financial markets is to raise investment, allocate resources efficiently, and mitigate risk. However, much of today’s financial activity does not contribute to these goals.” … (more)
EDITOR: On first glance, this seems like it would be a great benefit for the nation…but not for Wall Street. So it can never happen.
