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A securities turnover excise tax (STET) is a small
tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
on every stock, swap, derivative, or other trade. It has been levied historically in the United States and has been proposed more recently as a way to reduce
speculation In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable shortly. (It can also refer to short sales in which the speculator hopes for a decline in value.) Many ...
in financial markets.


History

In the United States, the STET was used to fund the
Spanish–American War , partof = the Philippine Revolution, the decolonization of the Americas, and the Cuban War of Independence , image = Collage infobox for Spanish-American War.jpg , image_size = 300px , caption = (cloc ...
. Re-instatement of the STET was briefly proposed in 1990 as a part of US deficit reduction measures.


Advocacy

John Maynard Keynes John Maynard Keynes, 1st Baron Keynes, ( ; 5 June 1883 – 21 April 1946), was an English economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. Originally trained in ...
, in ''
The General Theory of Employment, Interest, and Money ''The General Theory of Employment, Interest and Money'' is a book by English economist John Maynard Keynes published in February 1936. It caused a profound shift in economic thought, giving macroeconomics a central place in economic theory and ...
'' suggested that an excise tax on transactions and trades would discourage speculation in the stock market. In 1934,
muckraking The muckrakers were reform-minded journalists, writers, and photographers in the Progressive Era in the United States (1890s–1920s) who claimed to expose corruption and wrongdoing in established institutions, often through sensationalist publ ...
journalist A journalist is an individual that collects/gathers information in form of text, audio, or pictures, processes them into a news-worthy form, and disseminates it to the public. The act or process mainly done by the journalist is called journalism ...
and
novelist A novelist is an author or writer of novels, though often novelists also write in other genres of both fiction and non-fiction. Some novelists are professional novelists, thus make a living writing novels and other fiction, while others aspire to ...
Upton Sinclair Upton Beall Sinclair Jr. (September 20, 1878 – November 25, 1968) was an American writer, muckraker, political activist and the 1934 Democratic Party nominee for governor of California who wrote nearly 100 books and other works in seve ...
ran for
Governor of California The governor of California is the head of government of the U.S. state of California. The governor is the commander-in-chief of the California National Guard and the California State Guard. Established in the Constitution of California, the ...
on the End Poverty in California plan. The fourth plank of the plan called for repeal of the state's
sales tax A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
and imposition of "a tax on stock transfers at the rate of 4 cents per share." The STET was a major plank of the 2008 platform of American presidential candidate
Ralph Nader Ralph Nader (; born February 27, 1934) is an American political activist, author, lecturer, and attorney noted for his involvement in consumer protection, environmentalism, and government reform causes. The son of Lebanese immigrants to the Un ...
, and that same year was proposed by
Oregon Oregon () is a state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington, while the Snake River delineates much of its eastern boundary with Idaho. ...
Congressman
Peter DeFazio Peter Anthony DeFazio (; born May 27, 1947) is an American politician serving as the U.S. representative for , serving since 1987. He is a member of the Democratic Party. The district includes Eugene, Springfield, Corvallis, Roseburg, Coos Ba ...
as a means to pay for the
Emergency Economic Stabilization Act of 2008 The Emergency Economic Stabilization Act of 2008, often called the "bank bailout of 2008", was proposed by Treasury Secretary Henry Paulson, passed by the 110th United States Congress, and signed into law by President George W. Bush. It became l ...
.http://thomas.loc.gov/cgi-bin/query/C?c110:./temp/~c110o92WHs


See also

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Financial transaction tax A financial transaction tax (FTT) is a levy on a specific type of financial transaction for a particular purpose. The tax has been most commonly associated with the financial sector for transactions involving intangible property rather than rea ...
*
Robin Hood tax The Robin Hood tax is a package of financial transaction taxes (FTT) proposed by a campaigning group of civil society non-governmental organizations (NGOs). Campaigners have suggested the tax could be implemented globally, regionally, or uni ...
*
Stamp duty Stamp duty is a tax that is levied on single property purchases or documents (including, historically, the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions). A physical revenu ...
*
Tobin tax A Tobin tax was originally defined as a tax on all spot conversions of one currency into another. It was suggested by James Tobin, an economist who won the Nobel Memorial Prize in Economic Sciences. Tobin's tax was originally intended to penali ...


References

Excises {{finance-stub