A group of 50 financial professionals—investors, traders, academics and banking executives—urged G-20 and European leaders to back small financial transaction taxes (FTTs) on financial industry speculation.    

In a letter to world leaders, the group notes that FTTs “have a proven track record” and would help rebalance financial markets away from “a short-term trading mentality that has contributed to instability in our financial markets.” It also says FTTs have the potential to raise significant revenue.

Numerous countries, including those with deep and fast-growing markets, such as the UK, South Africa, Hong Kong, Singapore, Switzerland and India, currently have FTTs on particular asset classes that raise billions of dollars per year. New FTTs, whether agreed by the G20, EU or by individual countries, offer a real opportunity to help restore the financial sector to its proper role, while raising massive revenues for people in urgent need at home and in the world’s poorest countries.

The financial experts also say financial transaction taxes—a small fraction of a percent on each trade—would:

moderate the incentives for short-term speculation while having a negligible impact on long-term investment….As many notable economists have observed, a modest transaction tax will actually improve the functioning of markets….We believe this is an opportunity that should not be missed.

Click here for the full letter.

Earlier this week at the G-20 summit in Los Cabos, Mexico, AFL-CIO President Richard Trumka urged International Monetary Fund (IMF) Managing Director Christine Lagarde to support a financial transaction tax.   

For more information on FTTs and other financial issues, visit Americans for Financial Reform here .