Congressional Budget Office, Response to Questions About the Effects of a Tax on Financial Transactions That Would Be Imposed by the Wall Street Trading and Speculators Tax Act (Dec. 12, 2011):

This letter responds to three questions you posed about a tax on financial transactions that would be imposed if the Wall Street Trading and Speculators Tax Act (H.R. 3313 or S. 1787) was enacted:

• What impact would the proposed tax have on gross domestic product (GDP) and on U.S. jobs?
• What impact would the tax have on municipal financing, including the cost to municipalities of funding their activities?
• What effect would the tax have on the depth and liquidity of the global market for U.S. Treasury securities?

Press and blogosphere coverage:

• The Hill, CBO: Transaction Tax Could Hurt U.S. Financial Industry
• Wall Street Journal, CBO: Trading Tax Could Drive Away Financial Firms