Taxing commodity transactions is a wonderful way to raise revenue. Trading commodities is primarily high stakes gambling, risking hundreds of thousands of dollars for a few minutes, so any revenues raised would certainly be painless for those paying them.
The Bush administration wants to charge a pittance, 13 cents, for each round-trip transaction, raising an estimated $48 million annually. This would pay for most of the administration of the federal Commodities Futures Trading Commission. Consider, for example, that a contract of corn, costing about $12,000, would net 13 cents when traded, about the same tax generated by a Big Mac and a whole lot less than the tax on a Rolex.
I see nothing wrong with a higher tax-for example, a half percent, netting about $60 on the above transaction and raising over $2 billion annually. This tax would be affordable and could feed a lot of hungry mouths in our country.
