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The-Drawbacks-of-State-Taxes-on-Financial-Transactions.pdf
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🔗 Source: files.taxfoundation.org
📊 Size: 394 KB
📄 Pages: 12 pages
⬇️ Downloads: 55

Summary

The Tax Foundation discusses the drawbacks of state taxes on financial transactions, highlighting that a financial transaction tax (FTT) would raise transaction costs, lower trading volume and liquidity, and increase volatility. An FTT might not only discourage "undesired" trading but also have unintended consequences, and estimating revenue from it is difficult due to potential tax avoidance. States can tax financial transactions in various ways, but an FTT would result in tax pyramiding, adding a significant tax burden even at low rates. If multiple states implement FTTs, a security could be taxed multiple times, and lawmakers should be careful when designing taxes for the financial market.

Description

The Tax Foundation discusses the drawbacks of state taxes on financial transactions, highlighting that a financial transaction tax (FTT) would raise...

Technical Information

  • File Format: PDF
  • File Size: 394 KB
  • Pages: 12
  • Language: EN
  • Total Downloads: 55
  • Last Updated: 5 days ago

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