WSJ Transaction Tax Op-Ed

Don Luskin and I co-authored an Op-Ed in the Wall Street Journal, attacking a proposed transaction tax that would drive up the cost of trading for individuals and institutions. The tax would cost the average equity mutual fund 30 basis points a year in performance, directly. The true cost might be higher as dealers would face substantial taxes on stock they positioned, additional taxes to unwind, and more taxes if any hedging were required. Additionally, other market makers might reduce the liquidity they provide as a result of the tax, if enacted.

http://online.http://online.wsj.com/article/SB10001424052748703580904574638731631345994.html?mod=WSJ_Opinion_LEFTTopOpinion#articleTabs%3Darticle