Dean Baker: Democrats Take on Wall Street With Financial Transactions Tax

The House Democratic Party leadership made a remarkable step forward last week in putting out a proposal for a financial transactions tax (FTT). The proposal is part of a larger package which includes a substantial tax credit for workers, and also a limit on the tax deductibility of high CEO pay, but the FTT portion is the most remarkable.

There has long been interest in financial transactions taxes among progressive Democrats. The list of people who have proposed financial transactions taxes over the years includes Representatives Peter DeFazio and Keith Ellison, along with Senators Tom Harkin and Bernie Sanders.