National Transaction Tax Would Be ‘Foolish,’ Virtu CEO Says

The transcript discusses the potential impact of a transaction tax on businesses, particularly those that are technologically advanced and can easily relocate. It highlights the adaptability of businesses during the pandemic and the potential consequences of a statewide transaction tax, which could lead to businesses moving to other states. The discussion also covers the implications of a national transaction tax, arguing that it would be a poor policy choice as it would ultimately affect the real economy, including 401Ks and pension plans, rather than Wall Street. Empirical evidence from other countries suggests that transaction taxes are ineffective and counterproductive.

What has the pandemic taught businesses, according to the speaker?

• That they can operate from various locations.

• That they need to invest more in technology.

• That they need to reduce their workforce.

• That they should focus on local markets.

Why does the speaker believe a statewide transaction tax is impractical?

• Because it would benefit local economies.

• Because businesses can easily relocate to avoid it.

• Because it would increase state revenue.

• Because it would be difficult to implement.

What is the speaker's view on a national transaction tax?

• It would be a beneficial policy.

• It would be a foolish policy.

• It would have no impact.

• It would only affect Wall Street.

According to the speaker, who would ultimately bear the cost of a transaction tax?

• Government agencies.

• The real economy, including 401Ks and pension plans.

• Market makers and financial intermediaries.

• Wall Street firms.

What evidence does the speaker provide to argue against transaction taxes?

• Successful implementation in Sweden.

• Empirical evidence from jurisdictions where it failed.

• Support from financial experts.

• Positive feedback from businesses.