FTTs are unreliable sources of revenue and can increase risky financial activities. When looking to address income inequality and raise revenue, lawmakers should look to alternatives to this complicated and distortive tax.
Colin is a software developer at the Tax Foundation, where he uses his quantitative skill set to enhance the Taxes and Growth Model and to analyze tax policy proposals. Prior to joining the Tax Foundation, Colin worked as a junior trader for a small derivatives firm in Chicago.
Colin holds a Bachelor of Science degree in Mechanical Engineering from the University of Michigan in Ann Arbor. In his free time, he enjoys cooking, board games, and learning about transit systems.
Several 2020 Democratic presidential candidates have proposed changes to federal payroll tax rates and the Social Security payroll tax wage base to raise revenue and maintain solvency for major federal entitlement programs.
Policymakers should exercise caution in deciding whether to enact an FTT given the uncertainty regarding the FTT’s ability to raise revenue and the significant damage it could cause to the U.S. financial system