Bernie Sanders has a plan to raise $2T -- tax Wall St trading

[Yo_Mama_Been_Loggin]

Sen. Bernie Sanders has introduced a bill that would tax trading of stocks, bonds and derivatives at rates ranging from 0.005% to 0.5%.A so-called financial transactions tax could raise between $776 billion and $2.4 trillion over 10 years, economists estimate.The U.S. hasn't taxed financial trades since the 1960s, although the 2008 financial crash brought the idea back in vogue.

Sen. Bernie Sanders has put "Medicare for All" and free public college at the center of his 2020 presidential campaign, and he knows just who should pay for the federal programs: Wall Street. The Vermont independent this week proposed a bill that would impose a small tax on trades of stocks, bonds and derivatives.

Under the measure, any stocks traded would be taxed at a rate of 0.5%, bonds at 0.1% and derivatives at 0.005%. So selling $1,000 of stock would incur a tax of $5. Such a tax could conservatively raise tens of billions of dollars per year, according to the Congressional Budget Office, which estimated the potential revenue at $776 billion over a decade. A 2017 study by the University of Massachusetts concluded a so-called financial transactions tax could yield a far bigger bounty -- $2.4 trillion over 10 years.

While the top 23 banks in America received over $20 billion in tax breaks last year as a result of the Trump tax plan, hundreds of thousands of young people are unable to go to college because they can't afford it, 34 million Americans have no health insurance, one out of five Americans can't afford to buy the medicine prescribed by their doctors, over 40 million Americans are living in poverty," Sanders said in introducing the legislation.

https://www.msn.com/en-us/money/taxes/bernie-sanders-has-a-plan-to-raise-dollar2t-tax-wall-st-trading/ar-AABOs73?li=BBnbfcN

I wonder why lower on derivatives trading as compared to stock? I believe far fewer people and generally not the average Joe trade in derivatives.

[NYMinute]

1. It's not his plan

It is copied from a few other plans.

All of them are unworkable.

[rampartc]

2. wall st will aqueal like stuck pigs before they allow their congresscritters to pass this.

another consequence of the small tax woulf be to slow down the computeruzed trading that damages small traders at the benefit of those with faster hardware.

[lapucelle]

3. The plan has been around for at least a decade.

https://www.robinhoodtax.org/

[bronxiteforever]

4. Sanders proposed this tax in June 2012

https://www.govtrack.us/congress/bills/112/s3272/text

Senator Harkin proposed this tax in 2009 and again in 2011
https://www.govtrack.us/congress/bills/111/s2927
https://www.govtrack.us/congress/bills/112/s1787

House Bills were proposed with the earliest
being in December 2009
https://www.govtrack.us/congress/bills/111/hr4191/text

Again in 2011
https://www.govtrack.us/congress/bills/112/hr3313

[George II]

6. It was also introduced just two months ago by Senator Schatz of Hawaii.

https://www.commondreams.org/news/2019/03/05/progressive-tax-takes-aim-wall-street-transactions-financial-crashes

[George II]

5. This was already posted a few days ago. Plus, it's not his idea....

https://www.democraticunderground.com/?com=view_post&forum=1287&pid=130888

https://www.democraticunderground.com/?com=view_post&forum=1287&pid=131179

Progressive Tax Takes Aim at Wall Street Transactions, Financial Crashes

March 05, 2019

Democrats on Tuesday proposed a tax on Wall Street transactions which could stop another financial crash and bring in $777 billion over the next decade.

"The Wall Street Tax Act would tax the sale of stocks, bonds, and derivatives at 0.1 percent," said Sen. Brian Schatz (D-Hi.), who introduced the bill with U.S. Senator Chris Van Hollen (D-Md.) as lead co-sponsor.

"A stock trade of $1,000 would incur a tax of just one dollar," Schatz added.

The bill was also cosponsored in the Senate by Sen. Kirsten Gillibrand (D-N.Y.), who is seeking the Democratic nomination for president, and Sen. Jeff Merkeley (D-Ore.), who is not.

The House version of the bill was introduced by U.S. Representative Peter DeFazio (D-Ore.) with the support of Representatives Rosa DeLauro (D-Conn.), Raul Grijalva (D-Ariz.), Pramila Jayapal (D-Wash.), Ro Khanna (D-Calif.), Grace Napolitano (D-Calif.), Alexandria Ocasio-Cortez (D-N.Y.), Chellie Pingree (D-Maine), Mark Pocan (D-Wis.), Jan Schakowsky (D-Ill.), and Peter Welch (D-Vt.).

https://www.commondreams.org/news/2019/03/05/progressive-tax-takes-aim-wall-street-transactions-financial-crashes

[msongs]

7. how bout a penny a transaction, no need to calculate each one independently nt