INTRODUCING A FINANCIAL TRANSACTION TAX

ASK THE SAME PEOPLE WHO CRASHED THE ECONOMY IN 2008 TO PAY THEIR FAIR SHARE

A REASONABLE TAX ON HIGH RISK TRADES

REP. ELLISON'S INCLUSIVE PROSPERITY TAX

The Inclusive Prosperity Tax is a way to reduce to deficit by asking Wall Street speculators to pay their fair share. This bill would tax a fraction of a percent on the transactions made by the same Wall Street firms and stock traders who crashed the economy in 2008. This tax alone would raise $300 billion a year in revenue - a much needed aid for our current deficit. The other benefit of this tax is that it would reduce harmful financial market speculations, discourage high volume, high speed trading and slow down the proliferation of complex derivatives. Thus, this bill would have the effect of bringing economic stability by limiting high risk activities on Wall Street. In 2011, 40 countries had a similar tax. The United States also had a similar tax until 1966. A financial transaction tax has been publicly supported by Bill Gates, Warren Buffet, Paul Krugman, Joseph Stiglitz, Jeffrey Sachs, Robert Pollin and Larry Summers. Also, after the 1987 Wall Street Crash, Bob Dole and George H.W. Bush also showed their support for a Financial Transaction Tax.

Rep. Keith Ellison, Co-Chair of the Congressional Progressive Caucus and Chief Deputy Whip recently reintroduced The Inclusive Prosperity Act. Read more about it below.

THE BILL

H.R.1579: Inclusive Prosperity Act of 2013 (House Bill)

RELATED LINKS

The Inclusive Prosperity Act (A Summary From Keith Ellison's Official Site)

Democratic Rep. Introduces Legislation To Tax Risky Financial Transactions (Think Progress)

REP. DEFAZIO, HARKIN AND SHELDON'S FINANCIAL TRANSACTION TAX

Representative DeFazio and Senators Tom Harkin and Sheldon Whitehouse re-introduced the Financial Transaction Tax on February 28th 2013. The Wall Street Trading and Speculators Tax Act didn't pass in 2011or in 2009. The latest version of this bill would place a small tax of 3 pennies for every hundred dollars on a majority of non-consumer trades. This would apply to traded stocks, derivative contracts, options, puts, forward contracts, swaps and other complex Wall Street instruments. Senator Bernie Sanders is also a co-sponsor in addition to 19 members of the House. If this bill can pass, it will generate $352 billion in revenue over the next ten years, according to the Joint Committee on Taxation. A majority of Americans would experience no noticeable effects from this bill. For example, someone with a 401(k) balance of $60,000 would pay $18 per year. This bill would be more noticeable for high impact traders. This effect is intended. High Speed Trading is a real threat to the economic system and would theoretically be slowed down if this bill were passed.

Eleven Eurozone countries are already planning to implement a financial transaction tax at the beginning of the next year and are asking the United States to join the effort.

This tax makes it possible for the United States to generate revenue without burdening the middle class, and by asking the same people who caused the Financial Crisis in 2008 to chip in. This plan is a political winner.

THE BILL

H.R. 880: Wall Street Trading and Speculators Tax Act (Congressional Bill)

S.410: Wall Street Trading and Speculators Tax Act (Senate Bill)

RELEVANT LINKS

Financial Transactions Tax Introduced Again—Can It Pass This Time? (The Nation)

Europeans Urge U.S. Action on Financial Transaction Tax (Inter Press Service News Agency)

Lawmakers Introduce Targeted Wall Street Trading Tax (Tom Harkin Official Site)

Statement on the Financial Transaction Tax and Harkin-Defazio Bill (Common Dreams)