Harkin calls for tax on financial transactions

Sen. Tom Harkin (D-Iowa) called for the creation of a tax on financial transaction to help reduce the deficit. 

"At a time when the deficit is rising, we must find ways to reduce the debt without putting a heavy burden on average Americans or cutting necessary services," he said. "A small transaction tax can raise substantial funds with virtually no effect on middle-class families. And it has the added effect of dampening down overly speculative trading, which is partially to blame for the recent economic crash." Harkin joined Wall Street and economic experts as well as labor leaders and consumer advocates in calling for the tax.  

He and others argued a very small levy on short-term financial transactions would curb speculative trading and raise an estimated $100 billion annually.

The G20 is expected to discuss creating a transaction tax when it meets in Washington next week.