Financial Transaction Tax in the US and a spot on video about a "Robin Hood" Financial Institution Tax (in the UK)
It'sa great idea that won't see the light of day with this DINOadministration and Congress all controlled by Wall Street and bigcorporations.
Economist Dean Baker explained: "Just like that perfect sweater, a financial transactions tax(FTT) would look just great on those Wall Street bankers andfinanciers. A modest tax, which would be too small for normal investorsto even notice, could easily raise more than $100bn a year. That's real money even in the land of AIG and Citigroup bailouts.
"A tax of 0.25% on the sale or purchase of a share of stock will makelittle difference to a person who intends to hold the share for five to10 years as a long-term investment. This tax would cost someone buying$10,000 of IBM stock $25 when they purchase their shares. If the pricedoubles in 10 years, then they will have to pay $50 when they sell.These fees would be dwarfed by their capital gains taxes.
"A small increase in trading costs would be a very manageable burden forthose who are using financial markets to support productive economicactivity. However, it would impose serious costs on those who see the financial markets as a casinoin which they place their bets by the day, hour or minute. Speculatorswho hope to jump into the market at 2pm and pocket theirgains by 3pm would be subject to much greater risk if they had to payeven a modest financial transaction tax.
"Similarly, the financial engineers who specialise in constructingcomplex financial instruments may find a FTT to be a nuisance. A FTTcould cause their derivative instruments to be taxed at several points.For example, the trade of an option on a stock would be taxed, as wouldthe purchase of the stock itself if the option was exercised. Morecomplex derivatives could be subject to the tax many times over,substantially reducing the potential profits from complexity.
"TheWall Streeters and their flacks will insist that a FTT is unenforceableand will simply result in trading moving overseas. There is a smallproblem with this argument called the United Kingdom. The UK has had a tax on stock trades(trades of derivatives and other financial instruments are untaxed) fordecades. The revenue raised each year would be equivalent to $30bn inthe US economy. Obviously, the tax is enforceable."
It sounds like just the solution.
And speaking of the UK and taxing the super gazillionaire financial industry, we have this from Buzzflash: 'Britain's most successful comedy writer is aiming to tap into thepublic's fury at how bankers are scooping huge bonuses while the restof us suffer pay freezes by spearheading the launch of a campaigndemanding the introduction of a "Robin Hood tax" on financialinstitutions.'
(Bill Nighy does a superb job as the insufferably arrogant banker.)
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