Financial transactions tax: what it would raise in the USA
Two key US think tanks have produced a report setting out what a financial transactions tax would raise in the US. The Center for Economic and Policy Research (CEPR) and the Political Economy Research Institute (PERI) at the University of Massachusetts have calculated that where there is no change in trading volume, potential revenue from a financial transactions tax would come to $353 billion annually. Under a scenario assuming a 25 percent decrease in trade volume, potential revenue would total $265 billion annually. And under a scenario in which there is a 50 percent decrease in trading as a result of a financial transactions tax, potential revenue would come to $177 billion dollars a year. The report, “The Potential Revenue from Financial Transactions Taxes,” analyzes the potential revenue generated by financial transactions taxes across a range of financial assets.
Meanwhile, as it’s nearly Christmas, US campaigners have used the iconic Frank Capra film “It’s a Wonderful Life” to draw attention to the continuing class struggle over financial reform.