Crash Tax: Reparations to the 99%
from Edward Fullbrook
With the continuing fallout from the Global Financial Collapse and the global upsurge of real democratic sentiments, support seems to be growing for a Tobin or financial transactions tax. Yesterday AlterNet stated the case for it as follows.
Wall Street caused the crash. It caused devastating unemployment. It exacerbated deficit problems in the United States, Greece, Ireland, Portugal, Spain and Italy. If the market hadn’t crashed, sustained higher tax revenues would have prevented these difficulties from intensifying.
The crash tax is, essentially, a sales tax on financial transactions. The middle class pays sales tax on all the stuff it purchases. There should be no special exceptions. The 1 percent should be paying sales tax on the purchase of risky derivatives and on bets that derivatives will fail. This is equity. This is simple fairness.
A Crash Tax would not only reduce the kind of speculation that crashed the global economy, but would also raise revenue in a time of government deficits worldwide. The 0.1% tax proposed for European Union would raise an estimated $78 billion a year, and the miniscule 0.03% tax proposed in legislation introduced this month in the US Congress would raise an estimated $350 billion over a decade.
Supporters of the Crash Tax now include:
Peter G. Peterson (billionaire)
John Whitehead (former Goldman Sachs chairman)
Paul Volcker (former chairman of the US Federal Reserve)
Archbishop ofCanterburyRowan Williams
Pontifical Council for Justice and Peace.
Archbishop Williams writes:
There is still a powerful sense around – fair or not – of a whole society paying for the errors and irresponsibility of bankers; of messages not getting through; of impatience with a return to “business as usual” represented by still soaring bonuses and little visible change in banking practices.
You can read more about the Crash Tax here: http://www.alternet.org/story/153065/crash_tax_wall_street_should_pay_reparations_to_the_99?page=entire