This week is going to be a little different because I’m going to let you all in on a secret.
I was raised in a heavily democratic house…. then I moved out on my own and I realized-I’m not a democrat!
I know, I know… but keep reading– I promise!
Being someone who just got back from Wall Street and plans a soon return… I was very skeptical of what I read about the Robin Hood tax this week at http://www.robinhoodtax.org. I wanted to take some time out to talk about this because my views aren’t the same as many here in the town of Berkeley. I wasn’t a Bernie supporter, nor do I associate myself with the democratic party. It’s hard for me to say that because I feel like most people at my college will either A- stop reading now, or B- I’ll get a lower grade for expressing my beliefs. However, I have decided that people are decent and I won’t get too much backlash on this post:
So, what is the “Robin Hood tax” you ask ?
“Simply put, the big idea behind the Robin Hood Tax is to generate hundreds of billions of dollars…… This small tax of %0.5 on Wall Street transactions would generate hundreds of billions of dollars each year in the US alone.” (http://www.robinhoodtax.org/how-it-works). Bernie Sanders had planned to use this money to create free tuition for all college students in the US.
In my opinion, I do not support this tax- I feel that it would distort the market, and deter small investors from trading. I also believe it would have an impact on retirement funds since they are traded frequently.
“A small turnover tax is likely to deter the small-scale arbitrage that helps to reduce the short-term discrepancies between prices, making markets marginally less transparent and slightly less efficient.” (http://www.owen.org/blog/3092).
There are several other reasons why I do not think this is a good idea that would take a longer discussion. But, one thing that jumped out to me in the reading this week was the whole “getting back at Wall Street with this tax”, but a good thing to remember is that the banks and the bankers aren’t the ones who would be paying the tax… so that’s basically all of Wall Street right there.
These are my opinions and I would love to hear yours. I didn’t go very deep into my thoughts because I do not want to deter anyone from reading my post. I can’t wait for our in-class discussion because I’m ready to listen and understand different points of views. After all, that’s what one goal of my blog post was!
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