Emily Stewart reports one of the core parts of the Sanders campaign platform, the Wall Street speculation tax — otherwise known as a “financial transaction tax” — aims to raise billions of dollars in revenue by placing a small levy on every stock, bond and derivative bought and sold in the United States.
“Even though the rhetoric is that it will only affect Wall Street speculators, in fact, [Sanders’] tax would hit pretty much all investments,” said Bill Harts, CEO of Modern Markets Initiative, an advocacy group for high-frequency trading — an industry that would be hard-hit by the implementation of a financial transactions tax.
Harts pointed to the example of the California State Teachers’ Retirement System, which announced in September plans to move up to $20 billion out of stocks. Under Sanders’ plan, he says such portfolio realignment would cost more than $100 million. “Those are the kinds of numbers that people have to focus on,” he said.