Wednesday, May 24, 2017

"Do Tax Cuts Work?" and "The Parasite Tax"

During the 2012 presidential campaign, the NY Times ran a column by David Leonhardt analyzing whether tax cuts did, in fact, "grow the economy": Here is that discussion.

Peter deFazio is running for congress in Oregon. Part of his progressive platform is the institution of a tax on Wall Street speculation -- also called a "Tobin" Tax. I discussed this at some length in a blog from November 2010; read it here at The Parasite Tax. Basically, this is a (very tiny) sales tax on stock transactions. For most investors -- even most professional investors -- this is insignificant (maybe 1/4% on sales and purchases of securities. However, for computerized speculators who often trades thousands of shares a second, it amounts to real money. These people are not promoting capitalism by investing in companies based on sound business principles; rather, they speculate on second-to-second virtually statistical fluctuations of a stock's price.  They serve no social or economic purpose, and do what they do solely to make money for themselves. They are social and economic parasites -- hence the name of the tax. When you or I buy a washing machine we pay, in many states, a sales tax -- often 5% or more; these parasites pay nothing on the purchase or sale of stocks. How is that fair?

It isn't, so it's not a bad idea to sign Peter deFazio's petition and maybe even send him some money (let's keep the left-coast blue); here's the URL: Make Wall Street Pay

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