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I read an article that said we should move away from all taxes except for one tax on moving money around. Something like 0.01% on all transactions(bank to bank,

I read an article that said we should move away from all taxes except for one tax on moving money around. Something like 0.01% on all transactions(bank to bank, c2b, b2c, etc.). The taxes would be taken at the point of use and wouldn't need to be progressive because for most people it wouldn't cost much for typical use. Large businesses or very rich people would have to pay that tax to move money off shore etc. Not sure how feasible it would be, but it's an idea to ponder at least.

korethr 10y ago
Wouldn't such a policy disincentivize transactions, at least to a degree? I thought the whole reason for the federal reserve bank's monkeying with interest rates was to keep money in motion and being used, instead of just sitting piled idle in various accounts, because the former is better. In my mind money in motion necessarily implies lots and lots of transactions. Taxing transactions seems like it would make people want to keep money in their accounts instead of using it.
- weaksauce 10y ago
  It would, yes, I'd imagine. I looked up what it's called and it's the Financial transaction tax[1]. What some propose is to make it 0.3% on all transfers of money. Right now it costs $21.80 to send $1,000,000. The same payment under the new scheme would be $3,000. I have no idea what can of worms it would open up but it's an interesting thought experiment. 1. https://en.wikipedia.org/wiki/Financial_transaction_tax#United_States https://en.wikipedia.org/wiki/Financial_transaction_tax#Unit...
bcheung 10y ago
Ideally we should tax things that take us away from our collective values and reward or leave alone things that contribute to it. IMO, we should tax things that don't contribute to actual growth. Basically companies that merely extract wealth from the system without contributing anything of value like high frequency trading and predatory patent trolls. Taxing income makes no sense to me. Isn't that a disincentive to work? Work is one of the primary drivers of creating prosperity.
- tomcam 10y ago
  Please list a few of "our collective values"
  - bcheung 10y ago
    "Life, liberty, and the pursuit of happiness"
notahacker 10y ago
This is rather wishful thinking, because a high proportion of the "moving money around" transactions that take place either won't take place if you charge 0.01% to do it (market making/HFT, day trading, shifting money between theoretical business units that can be consolidated) or are directly or indirectly taxed at a much higher rate at present.

korethr 10y ago

Wouldn't such a policy disincentivize transactions, at least to a degree? I thought the whole reason for the federal reserve bank's monkeying with interest rates was to keep money in motion and being used, instead of just sitting piled idle in various accounts, because the former is better. In my mind money in motion necessarily implies lots and lots of transactions. Taxing transactions seems like it would make people want to keep money in their accounts instead of using it.

weaksauce 10y ago
It would, yes, I'd imagine. I looked up what it's called and it's the Financial transaction tax[1]. What some propose is to make it 0.3% on all transfers of money. Right now it costs $21.80 to send $1,000,000. The same payment under the new scheme would be $3,000. I have no idea what can of worms it would open up but it's an interesting thought experiment. 1. https://en.wikipedia.org/wiki/Financial_transaction_tax#United_States https://en.wikipedia.org/wiki/Financial_transaction_tax#Unit...

bcheung 10y ago

Ideally we should tax things that take us away from our collective values and reward or leave alone things that contribute to it. IMO, we should tax things that don't contribute to actual growth. Basically companies that merely extract wealth from the system without contributing anything of value like high frequency trading and predatory patent trolls. Taxing income makes no sense to me. Isn't that a disincentive to work? Work is one of the primary drivers of creating prosperity.

tomcam 10y ago
Please list a few of "our collective values"
- bcheung 10y ago
  "Life, liberty, and the pursuit of happiness"

notahacker 10y ago

This is rather wishful thinking, because a high proportion of the "moving money around" transactions that take place either won't take place if you charge 0.01% to do it (market making/HFT, day trading, shifting money between theoretical business units that can be consolidated) or are directly or indirectly taxed at a much higher rate at present.