posted on Mar, 22 2013 @ 11:49 AM
Currently there are two bills being proposed that would tax Wall Street transactions .003%. That tax would bring in about 353 billion dollars over ten
years. While I commend Senators Tom Harkin, Sheldon Whitehouse and Bernie Sanders and Representative Peter DeFazio for daring to approach the face of
God... they're doing it wrong. What the hell is 353 billion over ten years going to solve? It's putting a bandaid on a gaping wound.
A 1% tax is the way to go. One penny for every dollar traded in the market would generate over a one year period...16 trillion dollars, approximately
4 quadrillion dollars is traded back and forth on Wall Street per year.
Of course financiers are already bitching about the bill and crying that it affect the market negatively. Here's some of their
Today’s transaction tax proposals would apply the tax to the market value, rather than the par value, of a stock. Thus, the proposed tax is not
comparable to the transaction tax in place in the U.S. between 1914 and 1958.
The U.S. had a tax on the market value of a stock transaction for only seven years, from 1959 through 1965. The rate of that tax was 4 basis
points—less than one-sixth of the 25 basis points in the current proposal.
Even if a 4 basis point tax on market value were instituted now—i.e., even if the proposed tax were of similar magnitude to the tax that was in
effect from 1959 through 1965—such a tax would have a much greater impact on investors’ costs, as overall transaction costs have declined markedly
U.S. history provides no lessons on how markets would react to a transaction tax of 25 basis points.
I hate to think negatively about Senator Sanders (love him) but were these bills written in a way that make it so the market value is taxed as opposed
to a very straightforward 1 penny for 1 dollar on purpose, in order that it fails? I mean logic dictates that you don't screw up the one positive
thing we have going on with our economy right now. Is that even a logical argument? Am I being pie-eyed here? I don't think so, but I welcome anyone
to point out why this idea isn't
logical. How could 1 penny for every dollar turn traders and investors away?
We could eliminate all other taxes this way. We could end our war practice because we could afford to buy the things we now steal. We could end
poverty at home. We could afford health care, education, rebuilding our infrastructure. We could afford to maintain our military (for defense).
Employers could afford to pay their employees living wages. We could afford to become an innovative society once again.