I learned of a petition at the presidents site, that one where anyone can start a petition and have it addressed if you reach 100,000 signatures. We the People it’s called. The petition is sponsored by United Front Against Austerity which also goes by the name Against Austerity.org I know nothing about this organization, though I have looked. Thus, I’m remaining without opinion. But, I do like this one idea of theirs and the idea needs push.
The petition is to have a sales tax placed on Wall Street’s transactions. I think this is a grand idea. After all, Wall Street and the banks have always referred to their stuff as “products”. Finance accounts for over 8% of our GDP, over 30% of corporate profits. But, mostly financial transactions are so numerous that the total dollar value makes our GDP look puny. Our GDP represents 1.9% of the total of the financial sales. Of course, not all items would be taxable. It’ like food. We don’t tax that.
Many would call this a transaction tax but, this is the wrong terminology. Wall Street has made it’s self into a producer within our economy. To paraphrase the infamous words of Larry the Liquidator, they “make you money”. Odd as it is, money is what they sell to the consumer. They’re a regular “retail” establishment. At least that’s how they view themselves. So, we should welcome them to such a status by making them collect and submit biweekly sales tax.
Sales tax is one of the major methods by which we raise revenue. Everyone knows about sales taxes. It’s the tax that is not mentioned when the conservative bitches about those people who don’t pay taxes. Well, here’s an entire group who truly does not pay the tax every other person pays when they buy something.
President Obama should love this tax. He and (too many) other Democrates seem to want a balanced approach with his deficit reduction plan. A 2 to 1 tax to revenue is often mentioned. Well, considering sales taxes take up 5 to 7% of the lowest 60% of our population’s income (the bottom 20% pay 7%) and the top 1% pays about 0.5%, it seems to me the concept of balancing needs to look here.
The total sales are estimated to be $5 qaudrillion per year. That’s some gross revenue there. That means some major coin in sales tax.
According to UFAA:
The Wall Street sales tax is very much in the mainstream. HR-6411, introduced by Congressman Keith Ellison (MN), is gaining support in the US Congress and Vermont Senator Bernie Sanders has pledged to introduce such a bill in the US Senate.
Dean Baker wrote about a sales tax in February.
So, please go over to the presidents site and sign the petition. It’s only good until April 10th. The petition needs another 90,000 signatures. Let’s make Obama address this. Spread the word.