Feige's team with better data access, got the transaction tax down to 0.3% per transaction for the US economy based on late 1990's data.
The $124 billion referred to in the BayStreet.ca article above does not appear in my data collection attempt so clearly I'm missing a lot of potential transactions that could be taxed at a much smaller percent than 8.425%.
When it comes to "tax reform" the Canadian government of the day is fiddling with carrots and sticks when what we need is a transformation of the institution of tax collection to bring it in to the digital age. As far as I know, that $124 billion flow into Canadian securities was not taxed. It should be if we want to get a transaction micro tax into the 1% range as Feige has demonstrated is possible.
As Barack Obama said today at the United Nations:
I draw strength from the young Americans -- entrepreneurs, activists, soldiers, new citizens -- who are remaking our nation once again, who are unconstrained by old habits and old conventions, and unencumbered by what is, but are instead ready to seize what ought to be.
Max Planck's famous maxim (WikiQuote):
A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it.
So the challenge is up to the new generation of dreamers and coders to even out the playing field and get the individual tax burden down to the smallest amount by spreading the burden over the largest number of transactions.
Imagine a tax rate of 1%. If it's possible, why not take up the challenge? There is a huge upside for the private sector.
Hat tip to MigrationBureau.ca for the use of the image above.