The opponents of financial transactions taxes (FTTs) have argued that the imposition of such taxes will slow economic growth by raising the cost of capital. The argument is that if the cost of buying and selling stock and other financial assets is higher, then it makes it more expensive for...

Although the national debate on financial transactions taxes has just begun, there have been a wide range of responses arguing that the tax is either undesirable or unenforceable, or both. This paper presents a brief response to these criticisms.