Posted on 02/02/2021 3:45:13 AM PST by Libloather
Rep. Ilhan Omar called for a new tax on stock trades after a battle between an army of amateur investors and hedge funds caused a dramatic swing in the share price of GameStop and other heavily shorted companies, shaking Wall Street.
GameStop shares, which were worth about $19 at the beginning of January, climbed as high as $483 last week, a price surge so dramatic that TD Ameritrade and Robinhood placed restrictions on trading of the brick-and-mortar video game retailer. After plummeting on Thursday, GameStop shares made a dizzying recovery on Friday after Robinhood - facing a public outcry - said it would reinstate some trading.
“A small tax - 0.1% - on each Wall Street trade would reduce high frequency trading, a practice which drains profits from retail investors and benefits only the very rich,” Omar tweeted last week.
Revenue from the tax, which she estimated would raise about $1 trillion, could be used to fund progressive policies such as eliminating student loan debt and providing free college, the "Squad" member said.
Omar has previously introduced legislation alongside Sen. Bernie Sanders, I-Vt., to eliminate all of the nation's $1.6 trillion in student loan debt. The measure would be funded by a "Wall Street speculation tax" on financial investment transactions, including a tax of 0.5% on stock trades, a 0.1% fee on bonds and a 0.0005% levy on derivatives.
The lawmakers projected the new taxes would generate roughly $2.4 trillion over a decade.
(Excerpt) Read more at msn.com ...
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