Ellison Reintroduces Wall Street Tax

Rep. Keith Ellison is trying again to introduce a tax on stocks, bonds, derivatives and other investments in order to help low- and moderate-income families, according to a news release from the 5th District congressman.

“A lot of people in Washington like to talk about reducing the debt and deficits. Well if you really care about reducing the deficit, how about asking Wall Street speculators to pay their fair share?” a news release quoted Ellison. “This bill will add a tax of a fraction of a percent on transactions made by the same Wall Street firms and stock traders who crashed our economy in 2008. This tax alone will generate up to $300 billion a year in revenue, stabilizing the deficit and allowing us to invest in the things that matter—education, roads and bridges, and health care for our seniors and veterans.”

According to a summary of the bill from Ellison’s office, the tax imposed will be:

• 0.5 percent on stocks (50 basis points),
• 0.1 percent on bonds (10 basis points),
• 0.005 percent on derivatives or other investments (0.5 basis points)
• Provides an offset for households with incomes below $75,000 a year
• ($50,000/individual).

Ellison said the money would be “used to strengthen the financial security and expand opportunity for low-and moderate-income families, including strengthening the social safety net and expanding resources for child care, Social Security, affordable housing, health care and savings incentives.”

He also argues that the bill, the Inclusive Prosperity Act or H.R. 1579, would combat harmful speculation and high-volume, high-speed trading. Ellison noted that 40 countries had a similar tax in 2011 and that the United States did until 1966.

“Because of the computerized nature of the market, the tax would be easy to track and enforce and tough to evade,” according to the bill summary.

Do you think the bill is a good idea? Share your thoughts in the comments section below.