Financial transaction taxes in theory and practice

Leonard Burman, William G. Gale, Sarah Gault, Bryan Kim, Jim Nunns, Steve Rosenthal

Research output: Contribution to journalReview article

10 Scopus citations

Abstract

We explore issues related to a financial transaction tax (FTT) in the United States. We trace the history and current practice of the tax in the United States and other countries, review evidence of its impact on financial markets, and explore the key design issues any such tax must address. We present new revenue and distributional effects of a hypothetical relatively broad-based FTT in the United States, finding that, at a base rate of 0.34 percent, it could raise a maximum of about 0.4 percent of GDP ($75 billion in 2017) in a highly progressive manner.

Original languageEnglish (US)
Pages (from-to)171-216
Number of pages46
JournalNational Tax Journal
Volume69
Issue number1
DOIs
StatePublished - Mar 1 2016
Externally publishedYes

Keywords

  • Financial transaction tax
  • FTT design
  • FTT distributional effects
  • FTT revenues
  • Taxation of financial sector

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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    Burman, L., Gale, W. G., Gault, S., Kim, B., Nunns, J., & Rosenthal, S. (2016). Financial transaction taxes in theory and practice. National Tax Journal, 69(1), 171-216. https://doi.org/10.17310/ntj.2016.1.06