Will the U.S. Presidential election have an impact on financial regulation? The answer depends on who becomes President, the priorities of the winner, and the inclinations of the Congress. That said, we thought it would be useful to examine what the candidates say they will do. To summarize, we find Republican nominee Trump’s call to “dismantle Dodd-Frank” deeply troubling. By comparison, our differences with Democratic nominee Clinton are relatively minor.Read More
Financial transactions tax
If you put “FTT” into a search engine, the top results are for “Failure to Thrive.” Proponents of a financial transactions tax should find this disturbing. We find it amusing, but apt.
The idea of taxing the purchase and sale of certain securities has been around for a long time. The British first imposed a stamp duty on secondary market purchases of equity in 1694 – a tax that remains in force today. In 1936, Keynes proposed the imposition of a wider tax with an eye toward reducing volatility. In 1972, following the collapse of the Bretton Woods fixed-exchange-rate system, Nobelist James Tobin famously recommended a tax on currency trading as a kind of capital control that would provide central banks greater discretion in controlling their interest rates and exchange rates. As of 1991, Campbell and Froot list 20 jurisdictions with some form of securities transactions tax. With the move by 11 European Union countries to impose one as of January 1, 2016, the number of countries with an FTT will soon exceed 40...Read More