The Tobin tax   http://en.wikipedia.org/wiki/Tobin_tax   was originally
suggested as a way to slow down the volume of financial transactions of many
types.  Tobin said something like he wanted to "throw sand into the
mechanism..."  The Tobin tax was designed to slow down, only as a byproduct
would it collect revenues.  The Bit Tax
http://library2.usask.ca/gic/v2n4/cordell/cordell.html  was designed to
collect revenues.

arthur


-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Mike Spencer
Sent: Thursday, August 16, 2012 2:56 PM
To: [email protected]
Subject: [Futurework] Re: Arthur's 1st belief


Arthur wrote:

> May be time to consider new pricing and taxing ideas for the digital 
> economy.

Somewhere (Globe & Mail? Risks Digest? I forget) I saw a call for taxing
financial transactions in response to the automated-trading train wreck at
Knight. The idea was to deter myriad speed-of-light trades for a few cents
or mils profit each.  Dunno if it was just some journalist's two bits' worth
or if it's a notion that has legs.

By me, the whole stock market is subversive of capitalism.  Put money into a
business or project: you're committed to the success of that project for the
long run.  Put money into a project, then try to trade the stock: you've
created an incentive for the project to built a Potemkin village.

But I guess we're a century or three beyond good sense capitalism.

Hmmm...

How about a tax on stock trades that's confiscatory during the first
24 hours of ownership; punitive during the first year; then declineing
gradually to zero over 3 (or 5 or 10) years?  If neccessary, a flat-out,
draconian ban on any derivatives that attempt to end-run the tax mechanism.


- Mike

-- 
Michael Spencer                  Nova Scotia, Canada       .~. 
                                                           /V\ 
[email protected]                                     /( )\
http://home.tallships.ca/mspencer/                        ^^-^^

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