One recession is over. We are on the brink of a second, possibly deeper, recession. The American government is low on tax revenue. I believe one of the best ways to raise revenue would be to impose a tiny tax on financial transactions. Such an action would not affect trading frequency because of its small size. However, due to the huge number of financial transactions each day it would raise much needed revenue.
I am in favor of legislation that taxes financial transactions. A tax of 0.02-0.05% on each stock, bond, and commodity trade would raise significant revenue. A trading tax would minimally affect individual investors or retirees who trade infrequently. Rather, it would fairly tax large institutions that trade frequently and add to market volatility