Should Wall Street Speculators, have to pay their Fair Share? w Poll

(10 am. – promoted by ek hornbeck)



H.R. 1068
, the Let Wall Street Pay for Wall Street’s Bailout Act.

Wall Street Transaction Tax Proposed by Democrats

Ryan J. Donmoyer

Dec. 3, 2009 (Bloomberg) — A group of congressional Democrats proposed taxing large transactions in stocks and derivatives, an idea that has received a cool reception from the Obama administration. […]

.25 Percent for Stocks

The measure would be based on legislation DeFazio proposed in the House that would apply a tax of 0.25 percent or 25 basis points to stock transactions in excess of $100,000, and a levy of 0.02 percent or 2 basis points on derivatives including futures, options, swaps and credit default swaps.

Harkin and DeFazio said the proposed new levy is backed by more than 200 economists, the AFL-CIO labor union federation and business leaders including Warren Buffett and Vanguard Group Inc. founder John C. Bogle, now president of Bogle Financial Markets Research.

http://www.bloomberg.com/apps/…

Before all the usual suspects start kicking and screaming about the “drag on the Economy” this will cause — Let’s do a little math first:

x1 x2 x3 x5 x10
Transaction $100,000 $200,000 $300,000 $500,000 $1,000,000
0.0025 $250 $500 $750 $1,250 $2,500

$250 on a 100K trade? — that’s “Chump Change” for those Millionaire Investors.

Shoot, they spend that much on a Business Lunch!

But Let’s NOT let a little common sense Math, stop the Detractors from protecting their special “Interests” …  or is that their Clients and Colleagues?

Treasury Secretary Timothy Geithner said during a Nov. 7 meeting of Group of 20 finance ministers in St. Andrews, Scotland, that a “day-by-day” tax on speculation is “not something we’re prepared to support.”

Geithner was speaking in response to U.K. Prime Minister Gordon Brown, who said a transaction tax might prevent excessive risk-taking and compensate for the billions of dollars the public has spent on bank bailouts.

http://www.bloomberg.com/apps/…

Hmmm?  Gordon Brown is concerned about the Public reimbursement — and who is Geithner worried about?  One wonders?

In Timothy’s defense, he is not the only one, defending the Status Quo system, of anything goes, on Wall Street:  Derivatives are Good, Taxes are Bad — unless we can get all the Movers and Shakers to Play by the same Rules

Pelosi: Passing a Wall Street Transport Tax Would Require Overseas Buy-in

Elana Schor on Nov 19, 2009

DeFazio’s recommendation to impose a small per-trade tax on the Wall Street oil futures market has picked up endorsements from progressive economists and writers as well as 29 of his fellow Democrats. Pelosi, however, was cautious in addressing its prospects today during her weekly press briefing.

One of the concerns that some of us have about it,” the Speaker said, “is what it [might do] to us in terms of transactions going offshore.”

[…]

But even if House Democrats ultimately embrace the idea as a revenue-raiser for their jobs bill, the proposed tax is guaranteed to face an uphill battle in the Senate — where Wall Street has no shortage of powerful allies.

http://sf.streetsblog.org/2009…

Since when, has America become the arbitrator of World Exchanges?

If a Tax on “Toxic Trades”, chases them elsewhere, Isn’t that a GOOD Thing?

We need real investments in our Long-term Future — NOT just the churning of paper, that only Benefits those Wealthy enough to place their Bets.  If they want to “Churn” — then the People deserve a cut of that Action.  This is what the DeFazio Bill would provide — some brakes, some “negative reinforcement” on reckless Speculation.

Sadly however, the Wall Street Lobby will likely be able to “Buy the Rationalizations” they need to defeat the Bill H.R. 1068, if history is any guide …



Senator Chuck Schumer Opposes the “Trader Tax”


Joshua M Brown — September 15th, 2009


Dear Mr. Brown:

[…]

As you know, the Let Wall Street Pay for Wall Street’s Bailout Act, recently introduced in the House by Representative Peter DeFazio (D-OR), would improve a 0.25 percent transaction tax on the sale and purchase of stocks, options, and futures, and would use this revenue to offset the cost of the Troubled Asset Relief Program (TARP). While I share the frustrations many Americans have with some on Wall Street, I fear that this legislation has the potential to harm economic recovery efforts by deterring capital investment. I am particularly concerned about the burden a transaction tax would put on pension plans, which are already struggling to meet funding requirements, as well as other retirement investment vehicles such as 401(k)s and IRAs. […]

Sincerely,

Charles E. Schumer

United States Senator

Oh really Senator Schumer, you should get a better “strawman” argument than a “Burden on Pension Fund” — those are generally long-term investments, aren’t they?

By the way Senator, the House Bill H.R. 1068, specifically targets “speculators and has no impact on the average investor and pension funds”.

Here are the “protected Investments” that will NOT be Taxed, in the proposed bill:

DEFAZIO INTRODUCES LEGISLATION INVOKING WALL STREET ‘TRANSACTION TAX’

US Congressman Peter DeFazio

H.R. 1068

[…]

To ensure the tax is appropriately targeted to speculators and has no impact on the average investor and pension funds, the tax will be refunded for:

   —  tax-favored retirement accounts

   —  mutual funds

   —  education savings accounts

   —  health savings accounts

   —  the first $100,000 of transactions annually that are not already exempted

http://www.defazio.house.gov/i…

Isn’t the resistance to this “Micro-Trading Tax” more about keeping the Casino Open, and those PAC Funds flowing (ie the Senators’ Cut), than it is about, protecting Pensions and 401k?

They are already protected, by the Bill — and will be EVEN MORE Protected, once the Market is no longer subject to the whims and tunnel vision, of Wall Street Barrons and Hedge Funds.  THEY don’t give 2-wits about our Retirement Funds, THAT IS WHY WE NEED THIS BILL!

Do we want to stop that “Toxic Assets” Disaster from happening all over again, or What?

H.R. 1068

[…]

Credit default swaps where a contract is swapped through a series of payments in exchange for a payoff if a credit instrument (typically a bond or loan) goes into default (fails to pay) (tax rate will be 0.02%)

http://www.defazio.house.gov/i…

ie. If a risky paper bet, in the form of a Credit Default Swap, Fails — THEN it will be Taxed — at a minuscule rate.  Force the Co-Parties of those “Contracts” to Pay the Piper when their “Deal” falls apart —

QUIT FORCING THE TAX-PAYER TO PICK UP THEIR TAB !!!

and another thing …

Let those Junk Investments go overseas, if they want.

Since Overseas Banks got much of the TARP Bailout Benefits anyways, let them share in some of their Burden, for paying for their Fallout.  Let them absorb, some of the REAL Risk.

Alan Grayson: “Which Foreigners Got the Fed’s $500,000,000,000?”

Bernanke: “I Don’t Know.”



http://www.youtube.com/watch?v…

The Point is the NEXT TIME these Credit Default Swaps FAIL — the Parties involved in that risky Swap — those Risky Insurance Policies — should be on the Hook, NOT the US Tax Payers!   We need to put an end to “Vulture Capitalism” — Let them roost elsewhere!

Peter DeFazio has got the right idea — go to the source — the SPECULATORS — and MAKE THEM PAY THEIR FAIR SHARE (0.02% tax)  for their “opportunity” to over-leverage OUR Economy — and their “opportunity” to bet on its Failure and Collapse.

ONLY Real Investment, Long-term Investments, should be encouraged. The Other kind should Pay. The Others should buy “some insurance” for the American People. (and not vice versa.)

Faux Investment, Churn Investments, Bets on Bets on Bets, should NOT have FREE Reign — NOT after all the Chaos they’ve created for the Economy, thus far.

Their Track Record sucksand frankly we can’t trust the bastards.

If those Millionaire Day-trading Wizards, can’t afford a $2500 per $1,000,000 in speculation —

WHO NEEDS THEM?

How will the BIG Bankers, ever afford this, “outrageous burden”!?

Poor little bankers, can’t handle a 0.0025 transaction tax —

How about trying a 6-8% Sales Tax, as most Americans must face on their Daily Transactions?

A 1/4 of 1% Tax is Chump Change!

Someone’s got to Pay the Piper — SO Why is it ALWAYS  the little guy and gal, who has to pick up their tab, for their Business Deals?

WHY ???  

Why do WE cater to Wall Streets’ every whim?

What have THEY done for US lately?

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5 comments

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    • jamess on December 13, 2009 at 9:24 pm
      Author

    NOT the other way around!

    • Inky99 on December 14, 2009 at 8:08 am

    hanging from lamp posts, that will do more to right the wrongs of Wall Street than any kind of talk/bullshit/hand-wringing.

    Which makes me think of this:

    Are Americans a Broken People? Why We’ve Stopped Fighting Back Against the Forces of Oppression

    I have to say my heart was warmed, greatly, by the site of Silvio Berlusconi’s blood this morning.  We need more of that.

    • Inky99 on December 14, 2009 at 8:08 am

    hanging from lamp posts, that will do more to right the wrongs of Wall Street than any kind of talk/bullshit/hand-wringing.

    Which makes me think of this:

    Are Americans a Broken People? Why We’ve Stopped Fighting Back Against the Forces of Oppression

    I have to say my heart was warmed, greatly, by the site of Silvio Berlusconi’s blood this morning.  We need more of that.

  1. but they’ll kill it because they own the ‘parliament of whores’

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