What a great
idea!Brace yourselves Wall Street: Rep. Peter DeFazio is angling to tax the trading of stocks, bonds and derivatives.
The Oregon Democrat has teamed up with Sen. Tom Harkin (D-Iowa) to introduce the measure — a sequel to their 2009 bill — before the November G-20 meeting in Cannes, France.
Declaring Wall Street a “gambling casino,” DeFazio said the new tax would “both raise needed revenue for the Treasury and rein in speculation on Wall Street.”
Already, the business community is mounting a counteroffensive. With the congressional supercommittee looking to trim at least $1.2 trillion in projected debt over 10 years, the tax could look tantalizing, despite public opposition from many Republicans and Treasury Secretary Timothy Geithner.
“In reality, a proposal like this is going to be on the table in some regard,” said Tom Quaadman, executive director for financial reporting policy and investor opportunity at the U.S. Chamber of Commerce.
While the DeFazio-Harkin proposal fizzled two years ago, the idea has newfound momentum because of the creeping government debt and support for a similar proposal in Europe.
The tax could help shrink the deficit — its previous iteration was estimated to add $150 billion a year to federal coffers — and spare Social Security, Medicare and other programs from jarring cuts.
Backers said the energy may have permanently shifted in their favor as France and Germany have embraced the idea. Just like gelato and luxury sedans, the tax could emerge as the Continent’s hot new export.
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