If a tax could reduce some of the short-term trading that led to these price swings, it could increase the stability of the financial markets for everyone. While most of the people who engage in short-term trading are wealthy, there are some who are not. The massive growth of on-line brokerages in recent years has created a large contingent of day traders who are constantly buying and selling stock. These people, most of whom are not rich, would also notice a tax on speculation. But, there is no reason to feel sorry for the day traders.
Day trading is a form of gambling.
Other types of gambling, such as state lotteries, horse racing or casino gambling, are already heavily taxed. A small tax on stock speculation would just make the playing field a bit more even. A middle-class tax cut financed by a tax on stock trades could move Tax Freedom Day earlier by more than a week for a typical family. If Tax Freedom Day prompts the public to consider such reforms, then it will not have been a waste of time.