Newsflash:
Monday, 17 September 2012 23:36

Congressman Keith Ellison Introduces Bill Taxing Wall Street to Restore Main Street

Written by  Press Release Rep. Keith Ellison

WASHINGTON—Rep. Keith Ellison (D-Minn.) has introduced legislation that would raise billions to invest in our economy by taxing highly speculative financial transactions.

The Inclusive Prosperity Act (H.R. 6411) would tax the sale of stocks, bonds and derivatives sold by Wall Street firms. The tax imposed will be 0.5 percent on stocks, 0.1 percent on bonds, and 0.005 percent on derivatives or other investments.

These funds could be used to strengthen America’s families, communities and economy by supporting state and federal investments that improve our health, rebuild our crumbling physical infrastructure, and create good paying jobs.

“The American public provided hundreds of billions to bailout Wall Street during the global fiscal crisis yet bore the brunt of the crisis with lost jobs and reduced household wealth,” said Rep. Ellison.  “This is a phenomenally wealthy nation, yet our tax and regulatory system allowed the financial titans to amass great riches while impoverishing the systems that enable inclusive prosperity. A financial transaction tax protects our financial markets from speculation and provides the revenue needed to invest in the education, health and communities of the American people.” 

Because stock and bond markets are computerized adding a tax would be easy to track and enforce and tough to evade. The tax also would make high frequency trading unprofitable, which could reduce the excess speculation on commodities like food and gasoline that has caused their prices to escalate.

“Congressman Ellison is showing great leadership for our country,” said Jean Ross, RN, co-president of National Nurses United.  “HR 6411 is a critical step to generate the revenue for the healing and recovery our Main Street communities across the nation so desperately need.  From coast to coast, nurses, health care, environmental, labor, and community activists have come together calling for a tax on financial speculation so that Wall Street will help pay to reverse the damage its reckless behavior caused to our economy,” said Ross. “This is a small, common sense tax, already in place and working wonderfully well in dozens of countries across the world.”

Almost 30 nations have some form of a financial transaction tax and the U.S. had a similar tax from 1914 until 1966. The United Kingdom has had a tax on stock trades for decades – the same rate proposed in HR 6411 – and their volume of trading has grown robustly. Supporters of a form of financial transactions tax include business leaders such as Microsoft founder Bill Gates, Dallas Mavericks’ owner Mark Cuban, and Berkshire Hathaway chairman and CEO Warren Buffet.

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