This article posted on Financial Advisor Magazine’s website shows another side of the argument for a Financial Transaction Tax. Here are a few of the notable statements from the article, including the leading paragraph:
Opponents of one proposed Wall Street reform, a financial transaction tax, have been quick to point out it will make owning mutual funds more expensive for small investors. Investors should always keep an eye on the fees that eat up returns, but the arguments seem overheated.
And one of the later supporting statements:
The transaction tax could in fact offer a small benefit to Main Street investors that its opponents overlook: creating a financial incentive to promote better investment choices. While the costs would be borne in some measure by all mutual funds, actively managed funds, which are more profitable than index funds while generally underperforming them, would pay more simply because they tend to trade more.