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Wall Street Should Pay a Sales Tax, Too


#1

Wall Street Should Pay a Sales Tax, Too

Sarah Anderson

In case there was any doubt, the presidential election fight has confirmed that blasting Wall Street, even eight years after the financial crisis, is still a vote-getter.

Hillary Clinton has said she’d like to jail more bankers. Donald Trump has skewered the hedge fund managers who are “getting away with murder.” And Bernie Sanders has made Wall Street accountability a centerpiece of his campaign.


#2

This transaction tax is, of course, important, just, and overdue.

The following should also be added:

  1. Reinstatement of the Glass-Steagall Act
  2. A Wealth Cap (when exceeded, the extra cash becomes part of a Public Trust fund used to rebuild the nation's decrepit infrastructure)
  3. MAJOR restrictions on Hedge funds
  4. MAJOR restrictions on bank mergers (and/or breaking up the big banks)
  5. New rules for Fractional Reserve Banking (banks must HOLD more equity)

Puerto Rico's economy is imploding due to Hedge Fund billionaires calling in their "bets." Argentina is going through the same type of thing.

When I visited P.R. last year, taxes were at 10%. Poor people who have to buy household goods are essentially propping up the hedge fund junkies' portfolios!

Puerto Rico may have to raise the sales tax even more.

It's INSANE!


#3

You realize that when someone hits that cap they stop doing what they were doing and take retirement or a long vacation, that might involve shutting down plants, laying off workers and all that. Personally i wouldn't be looking forward to my employer hitting "the wealth cap".


#4

Sorry, but have to call BULLSHIT on this one:
Wall Street lobbyists are claiming that such taxes would still hurt mom-and-pop investors.
I am a mom & pop investor. How would this hurt me? The answer is that if I'm using the stock market correctly, investing in companies for the long haul: it doesn't. In fact, it actually helps fund the watchdog agencies that I expect to prevent shenanigans from being pulled by gamers!

I have been saying we need to tax financial products for years to stop day trading, which adds ZERO value to the economy. Folks in addition to taxing the instruments (stocks & bond purchases) we also need to make capital gains counted as regular income. Anybody who argues otherwise, is note being intellectually honest with themselves. Ask them why, and when they respond with something about double taxation, remind them that they paid income tax on the money they spent at the hardware store to buy goods that were all taxed again!


#6

Of course the Wall St guys don't want this - it will tax THEM - normal investors would pay very small amounts in a year - likely wouldn't even notice it - but those guys behind the scenes rolling the trades daily and speculating with all our money, are the ones this is designed to control - they hate the idea - of course if THEY hate it you should know who it will affect ! Why do they think the public is SO stupid they will believe their silly story of 'we are only worried about you little guys' ! BS !!!!! This has been seriously waiting for implementation since the crash !


#8

Is this the Sanders proposal that Clinton claims makes Sanders unqualified for the presidency ?


#9

Why 1% ? We pay close to 8% on most of the things we purchase. Charge them what we pay, or better yet charge everybody 4%. I think the general public would all support that.


#10

Is that what happened in the past when we had the cap? Factories shut down, people left the country? All those great capitalists couldn't be so great anymore? I don't think so. 40s, 50s, early 60s, etc. As I recall, that was when the middle class was built. Since we cap we removed, middle class crushed, inequality skyrockets, voter turnout drops, $ corruption increases. I look forward to a return of the cap.


#11

Remind me what the cap was. I can't recall.


#13

I am a normal investor and the tax would n't hurt me at all. I only make a few trades a year.


#14

If the 'wealth cap' were in place since 1776 Turtle Island would be unrecognizable in 2016.


#15

I bet your comment is a good one. If it were only intelligible.


#16

1%? I pay far more than !% tax on purchases I make. Rather sounds like heads I win tails you lose.


#17

Thank you for your work on this.


#18

Not everybody is financially savvy and make their own trades. Most people have have managed 401k mixed funds that get constantly traded and balanced to maximize income.


#19

If you are in an active mutual fund, then yes, you will pay more in taxes. Actively traded mutual funds don't really do so well anyhow, so this could have an impact on them. I pay a brokerage fee to make a trade, and often, there are some extra pennies per transaction included as well. So what. Day traders and speculators will cry wolf over this, but in the end, it is just a cost of doing business. With so much wealth parked in overseas tax havens, what's apoor country to do, but tax market trades?
We are 20 20 trillion in debt.

I say go for it! Bernie!