Tuesday, February 26, 2013

It's a No-brainer!

 Rick Claypool of Public Citizen points out that, "Unless Congress and the White House agree on a budget deal in the next few days, the $1.2 trillion in nonsensical and reckless government spending cuts known as the “sequester” will start going into effect on Friday.

One obvious revenue-raiser that should be a part of the deal to avert the sequester is a tiny tax on Wall Street’s financial speculation, which could raise $350 billion.

Tell Congress and President Obama: Put taxing Wall Street’s financial speculation on the bargaining table.

Rep. Peter DeFazio (D-Ore.) and Sen. Tom Harkin (D-Iowa) are expected soon to re-introduce the Wall Street Trading and Speculators Tax Act, which would raise the $350 billion in much-needed revenue over 10 years through a miniscule fee — 0.03 percent — on Wall Street transactions.

Because the fee is so small, it would target some of the most dangerous and volatile high-speed trading on Wall Street, while having virtually no impact on the vast majority of Americans’ investment activities.

And, even better, it could reduce the sort of high-speed, automated trading that led to the May 2010 “flash crash,” when the Dow plunged nearly 1,000 points in just a few minutes.

If anything should be on the chopping block, it should be Wall Street’s recklessness.


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