The Better Bargain: Transaction Tax, Not Austerity

[xchrom]

http://www.commondreams.org/view/2012/09/26-10

On the eve of Occupy Wall Street’s first anniversary, Congressman Keith Ellison introduced a much-needed common sense bill: HR 6411, the Inclusive Prosperity Act. The bill taxes financial transactions to generate revenue for social needs. Amid our consensus-narrowed, deficit-obsessed political debate, it’s a call to arms, and a breath of fresh air.


As I’ve often argued, a financial transaction tax is deeply pragmatic, broadly popular and sorely needed. At a time when budget slashing is a bipartisan obsession, it offers vital revenue. As we struggle to escape the recession wrought by the 1 percent, it presents a simple solution to discourage speculation. As progressives fight too many defensive battles, the financial transaction tax presents an urgent opportunity to go on offense.

Victory won’t come easy. Sarah Anderson, who directs the Global Economy Project at the Institute for Policy Studies, notes that “Obama’s communications director was asked about this at a press event during the convention and didn’t get an enthusiastic response. So that was a disappointing moment.”

But the FTT would never have made it thus far without sustained and savvy organizing. Groups like National Nurses United, National People’s Action, and Health GAP have been tenacious in forcing the FTT onto the agenda. Their European counterparts have forged a critical mass of support within the EU. And they’re backed on both sides of the pond by a slew of economists and financial professionals who wield common sense against Chicken Little lobbyists.

[HiPointDem]

1. kr

[loudsue]

2. That is much too reasonable to appeal to the extremists in charge.

It just makes too much sense.

That's why liberals would love it, and the PTB would scream bloody murder.

[Overseas]

3. K&R. Yes please! The transaction tax would also slow down the millions of robo-trades.

[Mopar151]

4. Skimming is not a productive enterprise

High speed trading, arbitrage, derivatives, short selling, currency trading - all are ways to skim cash out of the market without adding any real value to the transaction. A tax that a value./equity trader like Warren Buffet would barely notice will badly wound the skimmers and speculators - all in all, a good thing.