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'A Small Tax on Wall Street to Make Big Change': Bernie Sanders and Barbara Lee Introduce New Financial Transaction Tax

'A Small Tax on Wall Street to Make Big Change': Bernie Sanders and Barbara Lee Introduce New Financial Transaction Tax

Eoin Higgins, staff writer

Sen. Bernie Sanders and Rep. Barbara Lee unveiled legislation on Wednesday that will fractionally tax Wall Street transactions to produce trillions of dollars in public revenue.

"It's a small tax on Wall Street to make big change on Main Street."
—Mitch Jones, Food and Water Watch

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I like it in principle but I think it’s to easy on them.
Example

0.005 for derivatives

Hell the derivatives are what destroyed the economy in 2008. Bets on bets on bets. Screw 'em. You want to gamble like that?

10% per.

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As a former futures and options broker and compliance officer for a futures brokerage firm, in the “old days” before the Commodity Exchange Act was rewritten, and before lightning fast trades in huge lots were possible, a small tax such as outlined would have been a huge source of revenue.A feature to be possibly added would be to direct the revenue stream away from “defense” and toward education in general, and regulation of financial firms in particular.

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Today’s profiles in the insanity of predatory history: The illegal colonization by the MIC of the Chagos Islands being addressed by international justice for return of the people and 0.005 tax on derivatives. You cannot make this $#!t up.
The former is a scathing indictment of the dependency of the system on abuse, predation, larceny and murder when genocide is politically inconvenient.
The western powers need to grow some ethics, morals, spirit and humility. It claims the good things that human beings do despite its clear and obvious abuses and does so to hide the fact that it is a veiled death wish machine.

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When will progressives ever learn that the Federal govt. does not need to collect tax before they can spend.
The federal govt. is the issuer of the US currency!
Tax the rich because they are too rich and can buy too much political power - but not because we need their money to fund govt. spending.

Progressives will never defeat neoliberalism fighting on the neolibs chosen ground.
Do politicians ever impose a new tax to fund their new wars?
Macroeconomics 101 - learn MMT.

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This is not a “small tax on Wall Street”. This is a tax on anyone who has an IRA or 401k retirement plan. My retirement portfolio is actively managed. Every single day there are dozens of transactions among the various funds and accounts. I’ve made a good start toward being able to retire, but I need every penny in my account to be able to pull it off without eating cat food under a bridge. Putting a transaction fee in place would take hundreds of dollars a year from my accounts, not to mention the potential gains and dividends that would accrue from those hundreds.

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Keep it coming Bernie. The more you throw at these rich idiots the more nervous they become!

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Issuing currency drives inflation, it also drives down the debt in terms of actual cost. Our real economy is credit based with the overwhelming majority of money being created through debt and speculation. Increased frequency of loans by financial institutions is a faster path toward creating currency than “printing” currency. This fiscal seeding can be artificially increased through increased wages, i.e minimum wage laws, reduced unemployment, raising social safety systems such as food stamps, subsidized housing, universal health care, and dramatically/radically/exponentially increasing taxes on the 1%.

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Brilliant insight that’s been long overdue.

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Bernie has introduce many bills with other congress people ad other bills have been introduced by others. What is happening with them, and if they are moving why? and democrats should be shouting everyday if someone is obstructing them. We know in the Senate McConnell chief obstructionists/corrupted individuals who should be fired for not doing the business of the Senate. He is a criminal, that is in the process of bringing this country to its knees.

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The Dems don’t want to move progressive bills. Period. End of.

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How much annually do you pay fees to the banksters? for your 401K’s. They are robbing us. Yeah that 401K retirement plans is what got us to where we are. Before the 401K banksters plan, we had companies with profit sharing and pension plans, and good rates on CD’s. The banksters wanted your money and charged you handsomely over the years.

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I don’t think we are in a BIG inflation period. If we were abusing the printing of money the dollar would be worth nothing about now. There are more US dollars outside the US than in. We are still THE universal international currency. China wants to change that with their “UNION PAY” credit card (they have over a billion cards in circulation)

I get taxed on everything I buy or sell. WS should take part in that ritual.

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I saw an interview where a financial reporter was asking traders and hedge fund guys what a derivative was and no one really knew… except one young dude who said, “ It’s pieces of garbage and bad debt worth nothing that are traded to substantiate some sort of value.” Throw in worthless subprime mortgage debt, bad auto loans plus some more crap and give it a name. Sick!

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The Stock Market, led by America’s finest on Wall Street, is by far the largest Ponzi Scheme in history. Manipulated for and by the Rich, the number of laws that are broken every second is incalculable. All laws have been stripped from this runaway Locomotive that could crash our Economy and wipe us off the face of this planet at any time. The kicker is, there is no watch dog unit to oversea one ounce of sanity. We are living on the tip of a needle. Enron and Lehman were only tiny blips compared to the the real ticking nuclear time bomb.

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Not in a BIG inflation period as is Venezuela currently (thanks to the U.S.); but, inflation in the U.S. has been manipulated for decades by the federal government.

Currently, inflation in the U.S. is running near 10 percent, when calculated using the government’s 1980 method, and near 6 percent, when calculated using the government’s 1990 method.

See my post here, which will point you to a Website which specializes in this issue.

60 mins did a segment on derivatives years ago. Same thing. They are BS gambling. they should be outlawed or taxed heavily. We are back where we were in 2008. We;re screwed and its going to colapas again. Biden and the Dem ‘leadership’ are as responsible as the Fascists.

I pay less than 1% for the management of our portfolio. Well deserved given the consistent 6 to 8 percent growth in value, let alone the increase in dividends and interest. Before 401k plans you rarely had profit sharing or anything else than a defined benefit plan. A pension. Which counted on the company making investments which would allow them to pay out. Which has led to disaster for many corporations. CDs are bank products which have nothing to do with retirement savings. My investment advisors have, indeed, charged me handsomely over the years, but I’ve been richly rewarded for that investment.

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Agree the real economy is credit based - bank/financier issued money constitutes ~96% of all money in circulation- central bank (govt.) only ~4% Bank of England Qtly Bulletin (see page11)
However if issuing currency per se drives inflation, why are you not also concerned by banks/financiers issuing new currency? …as they do for each new loan issued. Increased loans by private financiers/banks creates increased private/household debt - real debt that has to be serviced/repaid in citizen earned dollars.
Citizens already have too much debt, adding to private debt makes matters worse - one cant borrow their way out of financial difficulties!
Federally issued currency has no associated debt/repayment burden - it is fresh injection into the domestic economy- providing jobs and wages to idle unemployed resources, producing increased productive output.
By all means increase taxes on the wealthy, they are too powerful - but that action is not prerequisite to obtaining Fed govt funds for re-spending.

Inflation is caused by too much money chasing to few goods - the federal injection creates new services and new goods out of previously idle resources.
The only way your so called ‘fiscal seeding’ can be realised is through unencumbered federal fiscal spending (currency issuance).
Those are the facts.

A good place to start learning about derivatives is the Wikipedia entry for “Financial Derivative”. There are many different types of derivatives; and, derivatives are where Wall Street firms makes most of their money. There are hundreds of trillions of dollars of outstanding derivatives. This is why Wall Street would be adamantly opposed to outlawing derivatives.

A few yeas ago, I tried to get a rudimentary understanding of some of these derivative schemes…and, they definitely are schemes.

Basically, I think of a derivative as a financial product that is derived from a set of underlying financial products.

One derivative scheme which really struck me was the repackaging of risky mortgages. Someone claimed that, mathematically, by combining a number of risky mortgages into a derivative package, you could reduce the total risk from what it would be if these mortgages remained separate. Such a derivative package could then be sold to an investor as an investment. When SHTF in 2008, I believe AIG was stuck with having underwritten a bunch of these derivatives where most of the mortgages defaulted. Thus, those derivative investments were practically worthless; and, AIG was on the hook. Hence the bail-out, rather than let some of these mega Wall Street firms and their shareholders go belly up, which is what really should have happened.

A second type of derivative which caught my interest was the “interest rate swap”, where a financial institution makes a variable-interest rate loan to a state, or municipality, or university, etc.; and, also sells that entity a scheme that will supposedly fix the rate of interest on the loan. On paper, this scheme appears legit; but, behind the scenes, the financial world was manipulating certain global rates which caused the entities to lose more money than they had anticipated, while the financial institutions made money hand over fist. - Here’s an article which explains this latter scheme:

The Global Banking Game Is Rigged, and the FDIC Is Suing – Apr 14, 2014 - Ellen Brown - truth-out

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