It is no surprise that we have financial problems with our
Nations revenue assessment or income tax programs! When
we have such completely greedy and short-sighted members
of congress, such as Rep. Peter DeFazio (D) Oregon, who just
appeared on the Cavuto Show today with his idea for a
proposed tax which would be set at approximately 0.2% on
each transaction. Of course, he has the endorsement of
AFL/CIO union bosses, and the liberals have jumped on
his bandwagon! I might ad that Cavuto said that his plan
was insane, and would result in more problems, than
any viable solutions.
The democrats are always quick to raise taxes and so
demented, that they are convinced that this will solve our
needs, to raise revenue. Not remotely aware, that any such
proposal will only further stagnate our sluggish markets,
and that if such, said tax is passed as legistlation, that it
will only result in these taxes being passed on to the end
user, just as all production cost are passed on to the retail
customer. All of this flies in the face of the most
knowledgeable economist assessment.
The Canadian government just conducted an exhaustive
study of these transaction tax programs and concluded by
completely rejecting all considerations of transaction tax
proposals upon final examination of the results. Sweden
attempted a similar tax on their investment transactions
with disastous results just three years ago, and terminated
their plans after a near financial melt-down, as a result.
The proposal to tax financial transactions is also known as a “Tobin tax,”
after the late American economist and Nobel laureate James Tobin.
Tobin proposed a transactions tax in the early 1970s to discourage
currency speculation after the collapse of the Bretton Woods fixed-
exchange-rate system.
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