As President, Sen. Sanders will fight for the creation of a tax on Wall Street to significantly reduce speculation and high frequency trading which nearly destroyed the economy seven years ago. Importantly, this initiative would also raise the revenue necessary to make public colleges and universities tuition free, create jobs, rebuild our crumbling infrastructure, protect our environment, and make other investments in our future.
This proposal would not tax investors, retirees, or parents saving to send their kids to college. Instead, it would impose a tax on Wall Street investment houses, hedge funds, and other speculators. If those Wall Street investment houses chose to pass the tax along to investors, this plan would provide a tax credit to individuals making under $50,000 and couples making under $75,000 to ensure that they would not be impacted.
Under the proposal, trades would be taxed at a rate of 0.5 percent for stocks, 0.1 percent for bonds, and 0.005 percent for derivatives. This means, for example, that a trade of $1,000 in stocks would be subject to a tax of $5. A trade of $1,000 in swaps or other derivatives would be subject to a tax of five cents.