The purpose of this dissertation is to contribute to the understanding of the impact of a financial transaction tax on the economy, specifically by examining the potential impact of a stock transfer tax on employment and revenue in New York City for the period of 2000-2009. This dissertation evaluates the impact the STT would have had if it had been actually collected by New York City from 2000--2009 to analyze first its economic effect on transaction costs and trading volume, and second, its fiscal and real impact on New York City.;Financial transaction taxes are currently becoming law in Europe and a source of contention in the United States. Current political economy discussions of a renewed stock market bubble and the need to raise public revenue arguably provide a new opportunity for serious consideration of the benefits and challenges of such a tax. This study evaluates the impact of a small stock transfer tax on overall stock trade volume, based on the elasticity of volume with respect to transaction costs that include a small tax of 2 basis points. I conclude trade volume would fall by 3.96%. I conclude that reduced trade volume will affect employment directly in the securities industry and create spillover effects in significantly-related industries, leading to revenue losses in New York City income taxes. I compare the tax loss as a result of the total employment job loss to the revenue gained as a result of the tax. The two measures calculate the total net impact of the tax. The net revenue gain to New York City is positive. My analysis concludes that the tax could be beneficial to the fiscal health of New York City, though the tax causes employment loss.;Two areas of future research are needed. First, more analysis is needed to determine how transactions tax may reduce systemic risk in the financial sector due to a reduction in speculative trading. Second, the relationship between the revenue gain from the tax and wage and job losses must be further clarified.
展开▼