The fiscal problems of the United States are largely due to the fact that Wall
Street pays no taxes. Like the nobility in France before the French
Revolution of 1789, the zombie bankers and hedge fund hyenas do not
contribute to the public treasury. The total turnover in terms of buying
and selling of securities, including stocks, bonds, and derivatives on
US exchanges is surely in excess of five quadrillion dollars (5,000
trillion dollars). A 1% tax on this turnover, equally divided between
the federal government and the states, largely solves the budget deficit
at all levels of government. It also discourages the most dangerous
forms of speculation, especially derivatives speculation, and helps to
level the playing field between financial services – which are now in
effect subsidized because they are not taxed – and the tangible,
physical production of manufactured goods on which our economic survival
depends.
This tax must be a full 1%, with an allowance for normal household
investment. HR- 6411, introduced by US Representative Keith Ellison
(MN-5) provides an ideal template for legislation, but must be
strengthened, with derivatives and other securities taxed at 1% to
discourage predatory speculation.