A top Europe official proposes tax on financial transactions
latimes.comIn the United States, the idea would probably be dead on arrival given th the current anti-tax mood.
Really? Is this same United States where the public quite strongly supports the raising of taxes on the very rich and would likely support this as well, or another one on the dark side of the fucking moon, that we haven't heard about?
Because I'd hate to think this was just a media outlet speaking on behalf of the American people, contrary to the actual thoughts and opinions of the American people, in a transparent bid to influence that opinion. Again.
One question I would have would be: What will the revenue be spent on?
Around 2006 or so (give or take a couple of years), per some stories I've read the SEC was taking in about $600 million in fees, annually. That went to Congress (effectively, when comparing influence to the Executive's, in this matter). Who in return doled out a budget to the SEC of $100 million.
I think transactions should be taxed, in good part (but not entirely) to pay for the obviously needed oversight and regulation. But if you fail to do that... you're just heaping distortion upon distortion. You're still failing to address the underlying problem.
In this particular case I would prefer a tax that discourages HFT somehow, regardless of revenue.
I can't properly answer your question though, as I don't know what you mean by distortion nor exactly what the underlying problem at issue would be.