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Study: Financial Tax Would Pay Off Big


#1

Study: Financial Tax Would Pay Off Big

Sarah Anderson

Elected leaders in Washington are heading into another season of wrangling over the same old federal budget revenue shortfalls. But a number of European countries are looking forward to a revenue injection from a fresh and deserving source: high flyers in the financial markets.

Eleven EU governments are now working out the final details of a plan for a regional financial transactions tax, with a January 2016 deadline for implementation.


#2

Sounds good to me. Any representatives out there keen to author such a bill?


#3

Not only should there be a transaction tax but the house should apply some dynamic scoring and make the financial institutions pay back the difference between where the economy is today and where it would have been had they not crashed it in 2008.


#5

Good post.


#7

Yes we have to stop picking on the poor rich they have it so bad in America. Mayb we should all cut them a check it might help with their misery.


#8

I'm surprised that the term "Tobin tax" is not mentioned in the article. Is that deliberate for some reason?


#9

A financial tax would increase govt. revenues, which would undoubtedly go into covering the costs of corporate tax cuts/handouts and the military, while presumably expanding our prison system even more.The middle class wants to reduce the gap between themselves and the rich, while maintaining the canyon between the poor and middle class. That's not going to happen. This isn't Europe, where people are considering a broader view, something a little closer to "the common good."


#10

If a financial transactions tax leads to making the changes you suggest are needed, I'd be all for it. And the article seems to suggest that we can expect such an outcome. If such a tax helps to deflate the bubble you describe, then the concerns you address about what happens when it goes bust arent such a concern but rather a desired outcome. If a financial transactions tax tempers wild speculation, then I'm for it.


#11

The liquid that's been trickling down from the rich onto your head isn't money inspite of its golden color. But, hey, if that's your thing, then by all means open up and say "aahh."


#12

From other sources I believe a financial transactions tax would slow down day trading which would slow down formation and bursting of speculative bubbles while having little effect on purchases to hold for a year or more.
Much of what government does ought to be counter-cyclical. Government should watch stats for unemployment, inflation, and interest rates. When unemployment is higher than inflation and interest, government ought to invest in infrastructure and encourage youth to take courses. When inflation and interest outweigh unemployment, youth should be holding short-term jobs and infrastructure can wait. As far as safety net spending is concerned, some humans are so incompetent that they can NOT make a living even when the economy is booming. They need to be supported to keep them out of others' hair. For those who need help when work is scarce but can manage when jobs are readily available, social safety net should be counter-cyclical. To manage counter-cyclical spending, a rainy day fund is needed to park money in during booms and draw from during busts. Sometimes it seems most national debt is from war; sometimes I wonder if war is just an excuse to waste money in an effort to stimulate an economy gone bust.