Posted on 08/22/2010 1:39:47 PM PDT by GailA
A tax on currency transactions could both stablize our finanical system and pay for investments in global health, climate change mitigation and affordable child care, according to Rep. Pete Stark.
“Every day, there are $4 trillion worth of currency transactions,” Stark, D-Fremont, said in a news release. “The vast majority of these are speculative – banks trying to make a buck by out-guessing the system. This speculation contributed to the last Wall Street crisis and makes our financial system less stable.”
“The proceeds of a new tax on currency speculation will be used to provide billions in new funding for important global and domestic priorities. At home, this bill will give more money to affordable child care programs. Globally, it will contribute billions to climate change and world health programs,” added Stark, chairman of the House Ways and Means Health Subcommittee.
It’s not a new idea; the late Nobel Laureate economist James Tobin was talking about something like this almost 40 years ago.
(Excerpt) Read more at ibabuzz.com ...
1% of $4 trillion is $40 BILLION in new taxes PER DAY. Figure 250 banking days per year and you get a total of $10 TRILLION in new taxes EVERY YEAR.
1% of $4 trillion is $40 BILLION in new taxes PER DAY. Figure 250 banking days per year and you get a total of $10 TRILLION in new taxes EVERY YEAR.
Except instead of trying to make money with overnight transactions, the banks will simply stop making those transaction and Stark will have single handedly destroyed the market.
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