It’s Time for a Financial Transaction Tax
While millions of Americans continue to struggle to find work, pay down debt and provide for their families, Wall Street has bounced back from the economic crisis it caused. Already, the financial sector is grabbing 30 percent of all corporate profits in America. And as we’ve said before, Wall Street has set its sights on making profits out of gambling with our essential, common resources.
With our communities still suffering and our common resources being imminently threatened by the financial sector’s risky practices, made that much riskier by noise trading speculators and their high speed trading algorithms, now is the perfect time to institute a financial transaction tax on Wall Street firms.
Just last week, Congressman Keith Ellison (D-5th-MI) introduced a bill called the Inclusive Prosperity Act (H.R. 6411). This bill is very similar to the Robin Hood tax concept that has been promoted both domestically and internationally to raise much needed funds in a time of global economic crisis, while reigning in some of the riskiest traders.
That’s why Food & Water Watch supports the Inclusive Prosperity Act.
The Inclusive Prosperity Act establishes a small tax, .5 percent on stocks, .1 percent on bonds, and .005 percent on derivatives or other investments that could raise more than $350 billion each year. These funds could ensure we make the real investments needed to grow our economy and provide a better future for our children.
Thanks, Elizabeth, for taking on this all important topic. I especially like your mention of the high speed trading algorithms that have made transparency and rational trading impossible. Instead it is an insider’s game and as such, they have absolute power (and we know what that does). They reek havoc on our national resources, as well, luring even environmentally- concerned and fair-trade minded individuals to ravenously support “prospector” companies in order to strike gold. I think the Inclusive Prosperity Act is a good start…should be limited to gains above a certain amount, though, and should be much higher than currently written.
Thanks for your comment, Nicole. We look forward to working with Rep. Ellison to get this bill passed.