How radical is Bernie Sanders' $50 billion tax idea?

[think]

Apparently Bernie isn't all that radical when put in a U.S. historical and current world policy context:

How radical is Bernie Sanders' $50 billion tax idea?

By Rob Garver - July 15 2015

As members of Congress debate how to pay for a number of initiatives that are expected to come before them this summer — particularly the pending expiration of the Highway Trust Fund — the idea of imposing a small tax on financial transactions will almost certainly be brought up repeatedly. Vermont Sen. Bernie Sanders and former Maryland Gov. Martin O'Malley, two candidates for the 2016 Democratic presidential nomination, have also called for such a tax.

Calls for introducing a Financial Transaction Tax have grown since the financial crisis and the Great Recession, and the concept has been just below the surface of many recent discussions of tax reform in the U.S. But before any debate over the idea heats up, a new study from the Tax Policy Center busts some of the myths surrounding the tax and comes up with a bottom line finding that, if properly implemented, it could raise $50 billion a year without seriously affecting the operation of the financial markets.

The study, by Leonard E. Burman, William G. Gale, Sarah Gault, Bryan Kim, Jim Nunns and Steven Rosenthal, begins by reminding readers that far from being a major innovation, a tax on financial transactions was actually the norm in the U.S. for much of the country's history.

"The United States imposed a nontrivial stock transactions tax from 1914 to 1965, as did New York State from 1905 to 1981," they write. "An extremely small securities transfer tax currently funds the Securities and Exchange Commission."

Many countries already have similar taxes in place, and 11 European countries are working to implement a joint system of financial transaction taxes in January of next year, which will in theory mesh with an existing FTT in France.

Full article:
http://theweek.com/articles/566127/how-radical-isbernie-sanders-50-billion-tax-idea

[TM99]

1. Well it is nice to get some vindication for

what several of us were saying when this first came up here a month or so back.

Every single myth was presented by the typical Third Wayer's. This study debunks them all. Beautiful I tell you, just beautiful!

[think]

2. Indeed. For those looking on here's some background as to the validity of the authors of the study:

for those that may

Tax Policy Institute

The Tax Policy Center (TPC) is a joint venture of the Urban Institute and the Brookings Institution. Based in Washington D.C., United States, it aims to provide independent analyses of current and longer-term tax issues and to communicate its analyses to the public and to policymakers. The Center combines national specialists in tax, expenditure, budget policy, and microsimulation modeling to concentrate on four overarching areas of tax policy: fair, simple and efficient taxation, social policy in the tax code, long-term implications of tax and budget choices, and state tax issues.

History

In 2002, tax specialists who had served in the Ronald Reagan, George H.W. Bush, and Bill Clinton administrations established the Tax Policy Center to provide analysis of tax issues. The following year TPC developed a tax simulation model to analyze the federal income tax and proposals to change it. That model has evolved to incorporate new and additional data, changes in federal tax law, and other aspects of the tax system and the economy.

Full entry:
https://en.wikipedia.org/wiki/Tax_Policy_Center

[SamKnause]

3. (If properly implemented, it could raise $50 billion a

year without seriously affecting the operation of the financial markets.)

They are robbing us blind.

They are using computers to make illegal trades.

They are manipulating commodities.

But, we wouldn't want to affect them !!!

I am so sick of the kid gloves approach to regulating and taxing

the wealthy thieves.

The writing is on the wall.

We will be bailing these assholes out with our tax dollars

again in the near future.

[Dustlawyer]

4. They should have to pay a tax off of this just for covering

what they cost us.

[RoccoR5955]

6. EXACTLY!!!!

But they should also pay more, as a deterrent from them doing it again!

[Dustlawyer]

10. I like your thinking!

[raouldukelives]

5. K&R nt

[elleng]

7. 'and former Maryland Gov. Martin O'Malley,

two candidates for the 2016 Democratic presidential nomination, have also called for such a tax.'

Please, think, give credit where credit is due.

Thanks

[smokey nj]

9. This isn't the Martin O'Malley group and I believe Bernie announced his plan first.

Has Martin denounced his PAC's attack ad on Bernie yet?

[Scuba]

8. Yeah, but what do Lloyd and Jamie want?