In the wake of the financial crisis, commentators have suggested a transaction tax (Tobin tax) on financial markets. The potential consequences of such a tax could be hazardous to the financial markets affected, as well as to the economy. Professor Wang, in a recent Cato paper, reviewed the relevant theoretical and empirical literature and applied these findings to estimate the possible impact of a transaction tax on U.S. futures market activity as well as its utility as a potential source of tax revenue. Wang showed that a transaction tax on futures trading will not only fail to generate the expected revenue, it will likely drive business away from U.S. exchanges and toward untaxed foreign markets. Our panelists will discuss the implications of this paper as well as general issues related to any proposed financial transactions tax.
Featuring Benjamin H. Friedman, Research Fellow in Defense and Homeland Security Studies, Cato Institute; Spencer Ackerman, Senior Writer, WIRED Magazine; and Julian Sanchez, Research Fellow, Cato Institute; moderated by Laura Odato, Director of Government Affairs, Cato Institute.
In the new issue of Cato Policy Report, Cato President and CEO John A. Allison argues that the Federal Reserve is increasing the long-term risk in our financial system through both its monetary and regulatory policies. Also in this issue, James D. Gwartney looks at the incomplete “public choice revolution,” and explains how mainstream economics is leaving both current students and the general public with a misleading, false, and romantic view of government and the operation of the democratic political process.
Featured BookRenowned development economist Deepak Lal draws on 50 years of experience around the globe to describe developing-country realities and rectify misguided notions about economic progress.
More Bang for Your Buck
The Cato Institute tops a new measure of think tank performance in the United States, according to a recent report. Cato bested all other U.S. think tanks in the main category of “Aggregate Profile per Dollar Spent.” “I’m grateful to the Center for Global Development for showing that Cato gives its sponsors something I wish government gave more of to taxpayers: bang for the buck,” said Cato CEO John Allison.