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Proponents argue that the tax is small and occurs only once, reduces savings much less than income taxes of equal yield, and is a useful tool for redistributing wealth.
The tax is small enough that it doesn't discourage serious long-term investment in productive businesses, but significant enough to make traders think twice about buying huge volumes of securities only to dump them a few minutes or hours later.
Similar(58)
In reality, the $58,000 in Medicare taxes is small beer for Mr. Romney, who voluntarily paid an extra $250,000 in taxes in 2011 to keep his effective federal income tax rate above 13 percent.
In actuality, the amount many red states pay in federal taxes is small compared to the amount they receive back from the government.
The OBR says the pool of people avoiding tax was smaller than expected, while the "behavioural response" was larger -- ie, people moved their money elsewhere.
The odds of lawmakers fiddling with taxes are small, especially without a real budget crisis.
Most of these taxes are small individually, but they can add up to a significant share of the price of a ticket, particularly for international flights.
"The equalizing effect of federal taxes was smaller" in 2007 than in 1979, as "the composition of federal revenues shifted away from progressive income taxes to less-progressive payroll taxes," the budget office said.
The number of tax inspectors is small.
Raising personal tax allowances is small beer for families facing rising food and energy bills.
But it's inevitably hard to see in practice because on Treasury's own modelling the economic effect of company tax cuts is small relative to other changes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com