how can 3 tax brackets improve things

[OurTown]

Transaction tax is interesting.  So as I understand it, it would be 0.7% on all "transactions," with each side paying 0.35%.  Question: how do you collect on a cash "transaction?"

[nereo]

follow up question re: transaction tax...

how does that work with lower-income individuals who spend most of their income, vs wealthy individuals who might spend only a portion.  Wouldn't that make it very regressive?  Capitol gains wouldn't be taxed under a transaction tax system, correct?

[OurTown]

http://www.epi.org/publication/a-financial-transaction-tax-would-help-ensure-wall-street-works-for-main-street/

From the article, FTT would raise between $100B and $400B in revenue.

[OurTown]

https://en.wikipedia.org/wiki/Financial_transaction_tax

[OurTown]

And here is a short blurb:  http://cepr.net/documents/ftt-facts-myths.pdf

These guys make the distinction between a FTT on investment trading and a universal transaction tax that would ding your personal bank account every time you made a deposit or swiped your debit card. 

[jim555]

Sounds horrible.