Dems Propose Financial Transaction Tax

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Just in time to capitalize on the Occupy Wall Street movement, Tax-&-Spend Democrats in Congress are proposing another new tax.

Phil Mattingly of Bloomberg News reports, Nov. 1, 2011, that Sen. Tom Harkin (D-Iowa) and Rep. Peter DeFazio (D-Oregon), introduced measures in their respective chambers to impose a transaction tax on financial firms that is modeled on — Wait! This is brilliant! — the European Union that is neck-deep in debt of country-bankrupting proportions.

The EU in September proposed a financial- transaction tax that would take effect in 2014 and raise about $57 billion euros ($78 billion) a year. Germany and France have led a push for global implementation.

While the EU proposal would apply a tax of 0.1% on trades of stocks and bonds, the proposed Harkin-Defazio tax would be “about three basis points” or 0.03%. “It’s a significant way to raise some needed revenue,” Harkin said. “Quite frankly, I bet nobody would even feel it.”

Dems have the backing of the usual suspects: unions, like the AFL-CIO and National Nurses United, a professional association and union for nurses. Both groups have scheduled a rally in front of the Treasury Department today in support of the fee. Americans for Financial Reform, an umbrella group of unions, civil rights lawyers and consumer advocates, is circulating petitions in support of the measure.

The chances a transaction tax could pass in the U.S. “are less than 50/50” primarily because of Republican opposition, Brian Gardner, senior vice president of research for Keefe, Bruyette & Woods Inc. in Washington, said in a Sept. 28 note to clients.

U.S. exchange operators fell the most since August on the news that the lawmakers would propose the tax.

NYSE Euronext (NYX) declined 6.8%, the most since Aug. 18, to $24.76, while Nasdaq OMX Group Inc. (NDAQ) fell 2.8% to $24.36. CME Group Inc. (CME) slumped 8.6% to $251.88 in the biggest retreat since Aug. 10.

Sam Ginzburg, a partner and head of capital markets at First New York Securities LLC, a New York-based proprietary trading firm, said the exchanges would be negatively affected by the proposed transaction tax because “volume will drop off. I shudder to think of the landscape of the market if this happens.”

~Eowyn

8 responses to “Dems Propose Financial Transaction Tax

  1. clean sweep in D.C.- everyone of them need to “pack it up”

  2. There’s a rumor some democrat in congress proposed a 1% transaction tax . I don’t know if this is true, but it would mean a transaction on every single thing you do, uip to and including the tax when your sure pay goes to your bank, when you write a check, or deposit money, use yoru debit card. Whenever you move your money around, it would get taxed. How many of us can afford that? Paying bills alone would casue us to lose a lot of our money. Anyone know any more about this?

  3. Sage just hit the nail on the head again~ the EU is sticking close to the US, because they want to have us on board as stooges when they go up against the big boys, Russia, China and India. Thinkin’ about the “Landscape of the Markets” brings to mind a picture of a tiny little Sarkozy standing at the foot of a giganic mountain with an imperial hand gesture towards it and a bubble that says “Move!” (en francais)

  4. We don’t need any more taxes.

    What we need are draconian spending cuts, as federal spending is out-of-control.

    -Dave

  5. Hey, G,

    You “approve” of this tax. Joe Schmoe over there “approves” of another tax. And Janine over there “approves” of yet another tax….

    And that’s how Americans are heaped with more and more taxes, until we choke.

    • G,

      You wrote: “If by putting this transaction tax into place would mean we also would equalize the burden upon the middle and upper-lower classes, then it would be great.”

      I am astonished that a woman as educated and informed as you are actually believe that, by approving of Congress levying a new tax on a group that you loathe, you actually think you have any say in how that new revenue would be spent. I am frankly surprised that a political sophisticate such as you falls for that, hook, line & sinker.

      Demagoguery (“impassioned appeals to the prejudices and emotions of the populace”) works each and every time!

  6. how about this for a tax everytime someone plays the race card and shouts racism they pay a hefty tax and if they continue to do so and fail to pay they lose their right to be an american and are ousted from the country.

  7. The percentage they are proposing is .03 percent.
    In Europe they are talking about 1 percent. Anyway, anyone know is this the IRS who collects this tax?
    The IRS is a privately owned corp. headquartered in Puerto Rico according to the inf. I found last time I checked it, but that may not be so. It isn’t a gov. entity neither is the FED. Our Constitution mandates something entirely different, and didn’t the US establish the sovreign republic we are supposed to be after the War of Independence was fought expressly to get out of the clutches of the monetarist system of the Oligarcfhs, ie The Rothschilds owned now called Inter Alpha Group of Banking Companies. How come we cannot get our Congressmen to adhere to the US Constitution, especially now when our president is amassing the largest military force ever assembled in the Med. and Indian Ocean environs, not including the drone bases which are overseen by the CIA not the Pentagon unless they are joined at the hip. A percentage of nothing, which is what the tax would be worth, since the money they are taxing is worthless, backed by nothing but a virtual digital economy that exists only in the imagination of the Bank Cartels owners and management. They have got us all tricked, and it’s getting trickier every minute. We need an intervention on a Biblical Scale to get the Glass Steagall reinstated to stop these guys.
    Marcy Kaptor’s HR 1489 is just sitting there in the House of Reps. the list of co sponsors and bodies that back it is growing daily. Anyone out there know of any strings we can pull to get this passed, like right away?

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