Statement on the Financial Transaction Tax and Harkin-Defazio Bill

For Immediate Release

Contact: 

Alan Barber, (202) 293-5380 x115

Statement on the Financial Transaction Tax and Harkin-Defazio Bill

WASHINGTON - The Center for Economic and Policy Research released the following statement from co-director Dean Baker on the introduction of the Harkin-DeFazio bill:

"The Harkin-DeFazio bill provides a way to raise a substantial amount of revenue while at the same time making our financial markets more efficient."

"The modest tax would discourage an enormous amount of short-term trading while having almost no impact on the ability of markets to finance productive investment. The cost of the tax would be born almost entirely by the financial industry, since for most investors the money saved as a result of lower trading volume will offset the higher cost of trades.

"At a time when Congress and the President are looking to cut Social Security, Medicare, and other essential programs, the idea of getting $40 billion a year from taxing speculation in the financial industry looks very attractive."

Click here for more on the Financial Transaction Tax.

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The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.

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