AFL CIO Pushes Additional Tax on ALL Stock Transactions

Discussion in 'Wall St. News' started by sophiekay, Sep 2, 2009.

  1. Please call the AFL-CIO to let them know this is a bad idea. Their phone number is 202-637-5000.

    AFL CIO Pushes Tax on All Stock Transactions

    After the federal government put up hundreds of billions of dollars to bail out Wall Street, the largest labor union in America wants those firms to return the favor.

    The AFL-CIO reportedly is promoting a proposal to tax every single stock transaction, and it's gained some support among Democrats.

    According to The Hill, the tiny tax would be about a tenth of a percent -- but it could mean a lot of money for companies, like Goldman Sachs, that are making billions and conducting a high volume of trades.

    Union policy director Thea Lee told the newspaper that the tax could raise between $50 billion and $100 billion annually for the federal government, but also serve to discourage "speculative financial activity." In other words, the kind of lightning-fast trading conducted by mega-firms which critics say leads to volatility.

    The idea reportedly is gaining some support in Congress and among top officials in London.

    But Mark Calabria, director of financial regulation studies at the Cato Institute, said such a tax would not be a big enough deterrent to change Wall Street behavior in any significant way.

    "The gamblers out there, the speculators, I don't think it's going to necessarily deter them," he said. "It's just another way to raise revenue. It really has no other value."

    Click here to read the story in The Hill.
  2. cool, vote democrat! woohoo!
  3. I'm a democrat, but this "class war" thing is going a bit too far.
  4. clacy


    I'm sick of these union thugs bullying the American political system.

    I will now be boyoctting all things Union. No more domestic cars, no more union grocery stores, etc

    Fuck em. I can vote with my wallet.
  5. Stosh


    How about a 50% tax on all new cars? Stosh
  6. Illum


    Is anyone from England avoiding taxes in the markets there, how does it work? Can I trade from here to German or Japanese markets and not pay the unions?
  7. Illum, I am doing research. It looks like the Canadian markets may one of many viable alternatives for the US investor.