currency tax

[driveby]

Each day, $4 trillion dollars of currency are traded. For international businesses and travelers, trading dollars for other currencies serve a legitimate purpose. However, nearly 80 percent of these transactions are undertaken by a handful of major banks. Experts agree that most of these transactions are made for purely speculative purposes.

 

Wealthy traders and big financial institutions make huge bets on the fluctuations in currency value, and they can make massive profits if their bets are correct. This type of speculation helped to worsen the recent financial crisis and serves no purpose other than to make a few people and institutions even richer.

 

Today, I introduced H.R. 5783, the Investing in Our Future Act. My legislation would simply impose a small tax — of 0.005 percent — on these currency transactions. The money raised would be put toward investments in children, global health and climate change mitigation.

 

For the average person or business, this small tax will hardly be noticed. But, due to the extreme speculation that takes place, it would raise significant funds. Studies estimate a worldwide 0.005 percent tax on dollar transactions would raise $28 billion a year and reduce currency speculation by 14 percent.

 

Here at home, the funds from this fee would be used to improve the quality and affordability of child care. This funding would provide more child care options, so working families can obtain the quality care their children need to begin school ready to learn.

 

Internationally, the bill would create a U.S. fund to assist developing countries with the impacts of global warming. At the United Nations Climate Change Conference in December, President Obama pledged to fund our country's commitment to mitigating the effects of climate change. This bill would make that promise real.

 

Finally, the legislation would create a Global Health Trust Fund to fight HIV/AIDS, Malaria, Tuberculosis and other diseases that kill millions of people each year in developing nations. This money will fund treatments and prevention for these diseases, as well as research aimed at eradicating them altogether.

 

For too long, the needs of the financial industry have trumped initiatives that will help lift people out of poverty and give children a healthy start. The Investing in Our Future Act will aid in getting our priorities back in order, and reduce financial speculation by Wall Street.

 

You can help — please call your Member of Congress and tell them to sign on as a co-sponsor of H.R. 5783. Find your member at http://house.gov

 

Crazy Pete Stark

[yo mama]

I'm fine with the tax, but object to the increased spending. Or - here's a crazy idea - we could pay down some debt.

[Perchoutofwater]

I'm fine with the tax, but object to the increased spending. Or - here's a crazy idea - we could pay down some debt.

 

+1

[wiegie]

The idea for this tax is not new. Nobel Prize winning economist James Tobin proposed it several decades ago (hence its name the "Tobin Tax"). Here is a readable paper by Tobin on the subject: http://college.holycross.edu/RePEc/eej/Arc...3_4P153_159.pdf

 

Overall, I think it is a pretty reasonable idea.

 

I'll note that it would be better if a similar tax were imposed on other major currencies.

Edited July 21, 2010 by wiegie

[Ursa Majoris]

The idea for this tax is not new. Nobel Prize winning economist James Tobin proposed it several decades ago (hence its name the "Tobin Tax"). I think it is a pretty reasonable idea.

I agree. It could also use a bottom end provision so that it only kicks in over e.g. $10,000, which takes all but the richest tourist out of the trap and applies the tax where it's intended, at the worthless paper pushers in banks casinos.

Edited July 21, 2010 by Ursa Majoris

[yo mama]

The idea for this tax is not new. Nobel Prize winning economist James Tobin proposed it several decades ago (hence its name the "Tobin Tax"). I think it is a pretty reasonable idea.

Pfft. Like that means anything these days.

[Perchoutofwater]

I agree. It could also use a bottom end provision so that it only kicks in over e.g. $10,000, which takes all but the richest tourist out of the trap and applies the tax where it's intended, at the worthless paper pushers in banks casinos.

 

Screw that, let the tourist pay it too. Then you might promote more domestic vacations which would be better for our economy.

[SEC=UGA]

He wants to levee this tax and use it to pay for what?!?!?!?!?!?!?! This guy is a nut case...

[Ursa Majoris]

Screw that, let the tourist pay it too. Then you might promote more domestic vacations which would be better for our economy.

Tourists come here too, y'know.

[geeteebee]

Tourists come here too, y'know.

 

yeah, but the mexican's don't bring cash with them.

[Perchoutofwater]

Tourists come here too, y'know.

 

Yes, but I'm for sticking it to everyone, not just the evil rich people.

[westvirginia]

The tax is totally voluntary. Don't want to pay it, don't trade currencies.

 

The spending, on the other hand, is ridiculous.

 

Here's a REAL chance for both sides to show bi-tard-isanship. Repugnantans can agree to whole-heartedly support the tax with two amendments. 1) A ten year sunset. Don't put it there and let everyone just forget about it, since we might not even need it in 10 years, and I don't think any one of those cucksockers needs a little hidden gem for their pet projects.. And 2) ALL monies for the first 10 years can NOT be included in any budget for any program. We treat this like an investment, only instead of buying through dollar-cost avg, we're paying down debt through dollar-cost avg.

 

From the posts so far, it sounds very amenable to most on both sides. It makes sense, is logical, and seems mostly unobtrusive. Therefore any politician would turn itself into ever-tightening circles to explain to us that it's a horrible idea.

[Perchoutofwater]

yeah, but the mexican's don't bring cash with them.

 

Just found out today that my father was elected to board of governors to the Shriners Hospital in Mexico City. I wonder how this will affect donations made in US dollars that have to be transferred to pesos.

[westvirginia]

They won't have to pay it. For a non-profit, the funds will probably kept in FRNs at a bank here in the states. In fact, I'd bet most of the business that hospital does aside from payroll could be just as easily done in FRNs as pesos.

 

Just found out today that my father was elected to board of governors to the Shriners Hospital in Mexico City. I wonder how this will affect donations made in US dollars that have to be transferred to pesos.

[polksalet]

Just found out today that my father was elected to board of governors to the Shriners Hospital in Mexico City. I wonder how this will affect donations made in US dollars that have to be transferred to pesos.

 

Just fyi, if you cross your dad I'm obligated to beat you down. If you don't believe me ask him.