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Our budget deficit is skyrocketing, and it is only going to get bigger.
The Obama administration is ready to unleash another zillion-dollar stimulus plan. Oh, they won’t call it a stimulus plan, but make no mistake … a whole lot of taxpayer money is going to get spent (and borrowed).
While it is unclear what the ultimate outcome will be of the administration’s health care reform, there is no question that it will cost BILLIONS … if not TRILLIONS.
Nobel Peace Prize or not, it now appears that we are going to expand the war against terrorism by sending as many as 40,000 additional troops to Afghanistan.
Our politicians will find some way to downplay the cost of those programs, but no matter what they tell us, their behind-the-scenes actions reveal an urgent need to bring in a lot more tax dollars to pay for their runaway spending.
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The Future of Hedge Fund Investing With more than 14 years of experience in trading, managing traders and risk management at Wall Street banks and hedge funds, Monty Agarwal is the authority on hedge funds. His latest book, The Future of Hedge Fund Investing: A Regulatory and Structural Solution for a Fallen Industry, explores the world of hedge funds, sheds light on a new hedge fund investing model and much more! |
With federal budget deficits soaring, policy makers and other advocates are eyeing the huge sums that could be raised as a way to cover the costs of new initiatives.
The newest idea, which appears to have overwhelming support from the Democrat majority, is to start taxing YOU for every securities trade you make. That’s right, our politicians want to tax you for trading.
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| One of the newest coffer-filling ideas in Washington is to start taxing securities transactions. |
The Economic Policy Institute has floated the idea of a national transaction tax that would raise $100 billion to $150 billion a year. The tax, at a rate of 0.1% to 0.25% of the value of the trade, would be levied on all financial transactions, including stock trades.
“We are in a difficult time right now, so people are looking at every opportunity to gain some revenue to fund new initiatives … why don’t we use it for stimulus or especially health care?” said Representative Stephen Lynch (MA-D), a member of the House Financial Services Committee.
Unnoticed by many, the concept already has found its way into federal law. At the urging of House Democratic leaders, last year’s $700 billion financial-bailout bill contains a provision requiring the president to submit legislation to “recoup” from the financial-services industry any eventual shortfall in the Troubled Asset Relief Program, or TARP.
Rep. Barney Frank, chairman of the House Financial Services Committee, said he supported the legislation’s idea of recouping future losses from the industry: “I was one of the ones who suggested.”
Former Federal Reserve Chairman Paul Volcker said it “might be interesting” if Congress ordered a study of the idea of a transactions tax. But he pointed to the problem of driving transactions to other countries: “That’s the No. 1 problem.”
Regards,
Tony
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{ 2 comments… read them below or add one }
Your article doesn’t seem to contain any structure of reasoning other than the narrow focus on the idea that investors should not be taxed? Are we focused here on the well being of a small group of Americans? If you disagree with the many well established economists who have cautioned us for a year now that the first stimulus plan was insufficient and that it is now too soon to begin to make balancing the budget in the near term the first prioirity (to avoid a repeat for example of Japan’s “lost decade”), it would be interesting to have more context, more info as to how you see your ideas being good for a larger group of people than investors.
I am, and we should be willing to pay our taxes, and forget the silly notion that we don’t have shared projects to accomplish together, while demanding transparency in every aspect of the functioning of society that affects each of us, including both government and financial companies.
Jason E. Pacifico
104 Graham Avenue
Staten Island, NY 10314
718-494-2482
347-707-0881
October 20, 2009
Uncommon Wisdom Daily
Ideas, Perspectives, Dialetics and Realizations
The National Debt, Currency Shock and Devaluation, Fraudulent and Predatory Subprime Market and Speculation and a Perhaps New Realization
The National Debt is 11.9 trillion dollars. That’s $38,000 per person or $152,000 per family of 4 in debt. The currency is expected to devalue against major currency driving up oil and gasoline prices and causing a harmful round of inflation (see the Nixon Shock of 1971). As a hedge, the banks, the big individual investors, the small-time speculators … there is approximately $3 trillion in sovereign wealth funds — government controlled investment funds — and a lot of those governments are becoming more wary of dollars. The sub prime fraudulent and predatory mortgage loan and speculation crisis (see US Supreme Court case: NYS and 49 other states’ in support vs. Office of Controller Currency) the FED has invested namely 23 trillion dollars to an expected family foreclosures of 3 million this year, 4 million next year and an additional 4 million (2011) the following year. There was in 2008, 3 million family foreclosures.
It seems the government only has in their basket of good-economics supporting a “viable” economy: massive foreclosures, could be 55 million people whom 2/3 will hit shelters, a banking industry with record profits from FED bailouts, business retraction and bankruptcy and unemployment. The stimulus package of 787 billion dollars, it was reported by WBAI radio, and they had a seminar on no debt f/ FED currency stmulus programs in Grenwich Village) that why did the stimulus monies have to be attached onto the national debt and whether if we had an additional stimulus package, it would in fact be better and profound economics not to attach the monies from the FED onto the national debt. It seems that debt has become a strange, sick, dysfunctional, exploitative and subjucative repressive and on the Suppression Theory and Oedipus Complex (Sigmund Freud indeed lied and said it was a hysterical complex of women (not real!!!) whom recounted memories of being molested as children), where we are chattel to this notion that debt is like “opium for us” (Henry Morgenthau, sr. comments at the Jekyll Island, Georgia conference in 1910 designing the FED for the Elite, Banks, etc. see who owns the FED). In addition, it was also reported that the states’ budget deficits could be amortized through the FED and not be attached onto the national debt saving massive retraction and in social services, education, teaching jobs, police and fireman and monies needed for shelters to deal with the homelessness issue from massive forclosures?
Moreover, as a more realized hedge to the economy, Obama should pay off the entire primary homes-that-people-live- in mortages, 55 million mortgages, preventing perhaps 15 million foreclosures (60 million: moms,’ dads,’ and their kids,), and a massive stimulus to the economy (70 percent of the economy is consumer spending and what a boost to the economy, businesses and jobs). The cost would be 12 trillion dollars, or if the Fractional Reserve Banking multiplier of 30 to 1 (just increased from 10 to 1 in the G20 London conference in 2009), it would only be 400 billion dollars. The 400 billion dollars (or we could just print the money “out of an idea” or “new interrelationship” or “economic currency relaization” rather than the nomenclature of print money “out of thin air”right from the FED as the Govt. did the 23 trillion dollars) could come out of the (400 billion dollars) next budget to pay, using the new 30 to 1 multiplier, (the 55 million mortgages or 12 trillion dollars. This would be a greater hedge to the economy that the TARP, TALF, PPIP and Fannie Mae, Freddy Mac, and Guarantees of 23 trillion dollars, that just went to the banks and not to relieve families in trouble, or just freeze foreclosures (’till the economy and employment improves) or help the homeowners specifically. The Obama’s modification plan is the biggest sham in history.
Sincerely,
Jason Pacifico