Eight Congressional Democrats propose 0.25% transaction tax on stocks

THOMAS (Library of Congress) ^ | February 18, 2009 | reaganaut1

[reaganaut1]

...

(5) The easiest method to raise the money from Wall Street is a securities transfer tax, a tax that has a negligible impact on the average investor.

(6) This transfer tax would be on the sale and purchase of financial instruments such as stock, options, and futures. A quarter percent (0.25 percent) tax on financial transactions could raise approximately $150 billion a year.

(7) The United States had a transfer tax from 1914 to 1966. The Revenue Act of 1914 (Act of Oct. 22, 1914 (ch. 331, 38 Stat. 745)) levied a 0.2 percent tax on all sales or transfers of stock. In 1932, Congress more than doubled the tax to help overcome the budgetary challenges during the Great Depression.

(8) All revenue generated by this transfer tax should be deposited in the general fund of the Treasury of the United States, scaled to meet the net cost of these bailouts, and phase out when the cost of the bailouts are repaid.

[reaganaut1]

Since Wall Street contributed more to Dems this cycle, they deserve this, but America's investors do not.

[prismsinc]

A new reason to get gold/metals and wait this thing out for at least 5 years or until Sarah wins and starts to fix this horrible mess

[gridlock]

The stock business would move offshore so fast there would be a whoooshing sound blowing down Wall Street.

[FreedomProtector]

the ‘rats are doing exactly the opposite to fix the stupid economic incentives the government has set up...

down, down, down the ‘rat hole we go...

[1010RD]

It would be funny, except it is true. I keep pinching myself, but I cannot seem to wake from this nightmare.

[Red in Blue PA]

Doesn’t concern me, as I won’t be buying stocks anytime soon.

An ammo tax increase would concern me.

[Tarpon]

If it moves tax it, if it still breathes, tax it again. If it dies, regulate it.

Democrats are simple organisms, raise taxes, fund socialism(fast becoming Fascism) and gun control. You connect the dots.

[gridlock]

By all means, let’s do what they did in 1932...

[johnthebaptistmoore]

Are you sure that the leftist majority will even allow future national elections to occur?

[scooby321]

Buy anything but American Stocks. Gold, Silver are good buys. Short American stocks ( really the whole country).

[SueRae]

More hopey changey.

The bank of Stearns and Foster is looking more attractive every day.

[silverleaf]

these idiots talk like “Wall Street” is some fat cat rich entity that pay taxes

“Wall Street” is millions of individuals, most of them not rich

I wonder how the teacher’s unions and other pension funds that make up “wall Street” will appreciate paying a transaction tax every time fund assets are bought sold or exchanged

[ChicagoHebrew]

The sad thing is that a financial transaction tax is probably a good idea — as a replacement for existing taxes. While all taxes are bad, a financial transaction tax is significantly less bad in that it doesn’t punish work or encourage inefficient behavior to the degree that the income tax, FICA tax, corporate tax or capital gains tax does.

[silverleaf]

LOL! No tax when you move assets from one side of Stearns and Foster to the other

[Tarpon]

No I am sticking with old glory. We will find a way through. I do own gold though ^_^

[gate2wire]

From the link...

“This Act may be cited as the `Let Wall Street Pay for Wall Street’s Bailout Act of 2009’.”

Once again the Rats lie. Wall St. would not pay this. It would be passed to the consumer(investor.)

Also, this would not pay for the bailout. It would go to the Treasury’s ‘general fund’ to pay for whatever the rats want. Spit.

[TheWasteLand]

The Democrats really want to see Dow 6000 by year end, don’t they?

[flaglady47]

“The sad thing is that a financial transaction tax is probably a good idea — as a replacement for existing taxes.”

Aye, and therein lies the rub. It will not be a replacement for existing taxes, it will be in addition to all existing taxes. It will be adding insult to injury.

[alli133]

The Dow more realistically will finish 2009 at 3500-4000.

[cdrw]

Something like 80% of the “transfers” that take place on “Wall Street” are very short term trades. These short term trades provide the liquidity necessary to keep markets from becoming wildly volatile (there is somebody there to buy when you want to sell even when the market is declining). A 1/4% tax would dramatically - prohibitively - increase these traders cost of doing business, would drive them out of the market, and would thus raise the cost of capital for every business in the United States. This is a very bad, very poorly thought out idea. They are simply searching for any means of raising taxes that can be attached to a fashionable boogey man so the sheeple will praise them as they tank our country.