Risky Trading Targeted in Democrat Proposal for Financial Transaction Tax
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Investors would face a 0.1% tax on each sale of stocks, bonds and derivatives under a Democrat-led proposal aimed at curbing risky trading behaviors.
The new tax would apply to the fair market value of stocks and bonds, and to payment flows under derivatives contracts. Initial public offerings and short-term debt would be exempt under the bill, which was reintroduced in the Senate Thursday by Hawaii’s Brian Schatz.