Democrats Considering Tax On Stock Transactions For Jobs Bill

[babylonsister]

http://slatest.slate.com/id/2235991/entry/3/

Democrats Want Stock Tax for Jobs Bill


Democratic leaders in the House are taking a serious look at imposing a new tax on stock transaction to pay for a jobs bill. The issue has been playing under the radar for a while, but now leaders are starting to pay attention as they try to figure out how a jobs bill could be funded. And taxing stock transactions is seen as an option that could have few electoral drawbacks. It would be a small tax, probably around 0.25 percent of each trade, so small investors would barely notice it. Major trading firms, however, could see their bottom lines take a hit, but since sympathy for Wall Street brokers is at an all-time low, no one is much worried about what they think. It's estimated that the tax could raise from $50 billion to $100 billion a year. Last week, the Wall Street Journal reported that the administration wants to use some of the leftover Wall Street bailout money to pay down the deficit. But today, the Hill reports that congressional Democrats have other ideas and want to use the TARP money for struggling workers and homeowners. Many in the Senate want to use it to help small businesses access credit, others want to give it to homeowners at risk of foreclosure, and perhaps even to fund part of a jobs bill. Some lawmakers contend the White House is misguided if it believes voters care more about the deficit than jobs.

[depakid]

1. As economist Dean Baker and others have argued- this is an eminently sensible thing to do

The UK has had a financial transactions tax around for years with no adverse effects. It ought to cover currency transactions as well.

[AzDar]

2. Hells yeah.

:thumbsup:

[One_Life_To_Give]

3. Put a dent in Day Trading

Not that that would be a bad thing.

[AllentownJake]

4. Timmeh Geithner won't be happy

Not happy at all.

[vi5]

5. Yes, they're "considering"...

..and I'm sure they're furrowing their brows really hard and pretending to be all stern and tough.

Until Timmy and Larry and Rahm and the Blue Dogs say all they have to say which is "No" then they'll go scurrying and buckle like cheap belts.

[madinmaryland]

6. Paul Krugman has been talking about this for at least a year.