Forest Baker, the Republican nominee to challenge Stark in November’s election, calls the idea “pretty crazy.” Though the .005 percent rate seems tiny, he said, it would be constantly compounding to ultimately cost currency traders a tremendous slice of their funds.
“That would never be tolerated by any of those entities, they would simply close those accounts, and that would then cripple the global financial capitalism mechanism of currency trading,” he said. “That would never happen, and Pete Stark has to know that. … It’s astounding to me that such a thing would even be proposed.”
The tax would be “astoundingly burdensome” both upon those on whom its imposed and for those administering it, Baker continued. “He can’t be that stupid, he’s got to be kidding us or playing politics. It’s possible one of his interns wrote that and he said, ‘Yeah, yeah, yeah, submit it.’”