Month: February 2013

Note: This post was originally published Oct. 24, 2012, but seemed timely to revisit now.

In my last post I asked why neither candidate ever proposes eliminating the capital gains tax subsidy (increasing the capital gains tax rate) as a way to decrease the deficit. Today I will remind readers of another way to reduce our deficit – that is by using a financial transaction tax. Why not tax Wall Street? After all Wall Street bankers didn’t hesitate to use predatory lending and dubious financial instruments to take the home equity savings of millions of Americans.

A financial transaction tax would tax those who can afford to have investments – namely the well off – and easily create funding for those who struggle – namely the working poor.

It is estimated that a paltry 50 cent tax on every investment transaction over $100 would result in additional tax revenue of $350 billion each year! That’s enough to cover our annual budget deficit and then some.

Not surprisingly, the EU has already realized that a financial transaction tax would be way to take back some of the money hijacked by the financial industry and currently ten countries are working toward instituting a transaction tax. Read more here and here.

The banking industry has been a draining trillions of assets from the American people for far too long in the form of bailouts and artificially suppressed overnight bank lending rates. Time to return some of these ill-gotten gains to the public purse.

But ask yourself, “Why is taxing Wall Street never discussed as an option?” “What happens when our government representatives are over privileged elites who consistently vote in their own interests rather than considering the common good?”

You may also like another topic not discussed by either candidate – Extreme Weather – and it’s impact on everyone, but especially on those made poor.

Note: This post was originally published Oct. 23, 2012, but seems timely to revisit now.

With so much talk about our annual budget deficit, national debt, income inequality, reducing benefits and raising income taxes by both candidates – I’m surprised neither party ever mentioned eliminating the capital gains tax subsidy by returning the capital gains tax to the income tax rate. It’s a logical option. Why should the profits made on investments be taxed SO MUCH LOWER than income earned through hard work? It’s a huge tax subsidy given to those who need it least and whose corporations use our government funded infrastructure the most – paid for through the courtesy of the rest of us.

Other options for raising tax revenue like adding sales taxes or a value added tax (V.A.T.) will always be regressive – that is – hurting those made poor who must spend nearly all of their earned income. Likewise raising earned income tax rates hurts those made poor rather than those who are over privileged (i.e. the rich) who don’t actually earn income, but receive money from profits on investments.

Those who have the luxury of living off their investments can most afford to pay more in taxes. Eliminating the capital gains tax subsidy by increasing capital gains tax rates is a logical way to increase revenue from the group most able to pay it.

I’m not the only one who thinks so – read more here and from a recent Washington Post article here.

But ask yourself, “Why is raising the capital gains tax rate never discussed as an option?” “What happens when our government representatives are over privileged elites who consistently vote in their own interests and in the interests of their biggest campaign financiers rather than considering the common good?”

Next up: Another way to reduce the deficit that presidential candidates never mention.

You may also like Luck or Privilege? and Myth of Objective Reporting.