Green | January 06, 2012 | 18 comments

Why a financial transaction tax? A way to tax the rich

JanforGore
Debate is currently going on regarding instituting a financial transaction tax on certain trades of 0.25% that could raise billions to basically slow the short term investment volatility that has made Wall Street now little more than a crap table at a casino. This is an interesting report that gives answers regarding what it is, Europe's response, the U.S.'s response ( hint: Geithner tried to talk others out of it to the cheering of Corporate America) and the all out effort by Wall Street to stop it.

Personally I think it needs to be considered as a viable way to curb the high-frequency stock trades that drive short-term financial thinking and provide a way for us to tax the rich in a way that will not end the world but enrich it for the whole. There are a myriad of ways such income could be used but of course that is assuming it is handled in a diligent and prudent manner.

Also, it is not just about the money but the moral investment along with the financial that ensures growth and sustainability not only of the investment but the environment. You simply cannot have true growth in a short term market timeframe. As we have seen it only leads to collapse and environmental devastation.

There was a time when people who were entrepreneurs with big ideas sought out longterm investing in the hopes of those ideals not only making profits over the longterm, but also in bringing about an atmosphere that was not exclusive, predatory, or tipped to only favor one specific entity at the expense of all others.

However, this is a symptom of a bigger societal problem where quick fixes and getting everything fast has infected every part of society. Fast food, instant messaging, fast internet connections at lightning speed and quick fix democracy (case in point the 2000 USSC decision that picked the wrong man as president) are just a small sampling of the society we have made where fast transactions for quick profit and gratification without considering the longterm consequences in comparison to sustainability have now also led us to a climate tipping point as well. And yes, that is insane and needs to change if we are to save our markets and ourselves.
  1. groups:
    News and Politics,   Green,   Progressive America,   Earth Care,   2 more
  2. tags:
    Environment,  Climate Change,  Markets,  Sustainability,  11 more
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18 comments // Why a financial transaction tax? A way to tax the rich // Video

  • Paratus
    • 0
      Paratus  

    • A lot of opinion in the opening post. I don't see where we have the right to tell day traders what is moral or justify taxing them more. ALL of the market is speculation, even retirement funds. Even people who do day trading are still in the market for the long term. It is just that they buy and sell at a faster rate. Should we tax if someone churns their own account faster than you think is proper? Who makes this determination and based on what? Make everyone pay the same percentage, that is fair. When almost half of the filers pay no FIT that is NOT fair. This idea is just looking for another way to confiscate money from people who make it. THAT is morally wrong.

    • 5 months ago
  • JanforGore
  • tommic
  • tommic
    • +2
      tommic  

    • Every single major market in the world from Hong Kong & Singapore, Japan and European exchanges. It could be a source well into the hundreds of billons of dollars over the coming years, almost guaranteed. It would also probably cause a software change in high speed trading that can take advantage of short swings very quickly turning huge profits. A trade tax would have to be taken into account on the per profit per trade basis. None the less it generates huge $$$$ and hell, everyone else does it, international companies are already exposed to it in other markets. So it's no skin off their ass.

    • 5 months ago
  • Leen61
    • +3
      Leen61  

    • "Why a financial transaction tax? A way to tax the rich" Yes, let's tax the rich. It's long overdue! Power to the 99%!

    • 5 months ago
  • wolfess
  • Leen61
  • rerushg
  • JanforGore
  • MSII
  • ThirdSection
  • wolfess
  • JanforGore
    • +3
      JanforGore  

    • Why could we not use this to tax certain oil company transactions and use it to clean up their toxic messes and restore the communities they have ruined and the lives they have wrecked?

    • 5 months ago
  • artemis6
  • JanforGore
    • +3
      JanforGore  
    • artemis6:

      Of course they would never agree to that which is why we need to then have legislation to tax their smokestack pollution and forbid them to pass it on to consumers, or have a revenue neutral carbon tax that gives incentives to move quickly to renewable energy and give back to consumers and their children. This is the biggest battle we now face to preserve our future. The bottom line is, they must pay for what they have done and continue to do to our world in so many ways environmentally, economically and socially.

    • 5 months ago
  • artemis6
  • JanforGore
    • +3
      JanforGore  

    • In 2009 U.S. Rep Peter deFazio proposed the Let Wall Street Pay for the Restoration of Main Street Bill which includes a tax on US financial market securities transactions at a rate of 0.25 percent. The tax would target speculators only, since the tax would be refunded to average investors, pension funds and health savings accounts. Projected annual revenue is $150 billion per year would see half go towards deficit reduction and half towards job promotion activities.

      http://www.govtrack.us/congress/bill.xpd?bill=h111-4191

      Big shock, the bill never became law.

    • 5 months ago
  • MSII
    • 0
      MSII  
    • JanforGore:

      Well you know their holy-doctrine about "job creators", can't touch those precious "job creators", cuz well you know - they're busy creating all those jobs... Ha! What a joke that is!

    • 5 months ago
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