Here is Congressman Pete DeFazio speaking to congress on Trader Tax. http://www.youtube.com/watch?v=qJO7hSbzc-4
I understand his sentiment, but he's just engaging in political grandstanding. This bill will never get out of committee once enough of these guys realize what a crock it is.
If you look at his bio.. his whole career is somewhat of a sham. He only made it to Congress because his opponent self-imploded. After 10+years in Congress, he hasn't done anything significant for the people to remember him by. He had to pull his name from the senator race on multiple occasions because he simply never had enough support. Obama even recently passed him up as a Cabinet member.. but the fact is he was never really seriously considered or qualified. That being said, he is obsessing over this issue because he simply has nothing else to show for his career. Even people in his own party realize creating an additional tax will destroy numerous jobs and crush the markets. This is why you don't really see prominent democrats touching this issue. They know the end result.
I'm obviously opposed to the tax, but I salute Rep. Defazio for standing up for the terrible taxpayer ripoff that was TARP I. 66 cents on the dollar received for those funds was highway robbery, and those who orchestrated it (namely Paulson) should face severe consequences for their misdeeds. Taxing every trader in the country though is targeting the wrong party.
Not only in "the country" but in "the world" as well. Do they realize that US stock market is the largest casino in the world where millions of traders from all over the world spend their hard-earned money? That this industry is one of leading US export industries? And all this thanks to its reputation for transparency, favorable tax regime and technological superiority.
Yes. tax the homeowners. A "very small transfer tax" on every real estate deal would be absorbed in the costs of these long term situations. Plus it is the idiot over-extended homeowners that started this.
Charge the tax immediately before the process even gets started. No monthly payments. In cash. No credit card. Most people have no concept of cash, only credit. Watch most of them scurry around hitting up anyone for a few bucks. "I don't have $500 on me for the Housing Bailout Transaction Tax. Can you spare a dime? I really need to buy a house before I waste more money on another new color iPod and other really important things."
Obviously, I'm totally against this tax. But if it does gain steam, this tax should only apply to investment banks and hedge funds. Not for personal traders who trade their own money for a livihood.
Fractional Reserve lending caused this. Bankers caused this. Prop shops trading 25 mil and 401K'ers, did not. If 'Douche-Bag' Defazio wants to nix bubbles, he needs to go after Greenspan for keeping rates at 1%. Save that, he needs to go after Congress for Banking/Monetary reform. This won't happen because Defazio is a clown who knows nothing about economics, nor has the balls to confront any of the real culprits.