STOCK TRANSACTION TAX: YET ANOTHER TAX INCREASE
December 8, 2009
Congress is discussing yet another tax increase. This one would be a tax on stock transactions and could fund a new jobs bill since it has become apparent to everyone that the stimulus failed to create any jobs on net, says the Heritage Foundation.
The push for the tax began a few weeks ago when the AFL-CIO, in concert with some Congressional leaders, began a new campaign for yet another tax hike to fund Washington's ongoing explosion of spending:
- This latest collaboration between Big Labor and Big Government would be a 0.25 percent tax on all stock trades.
- Given the budding deficit pressures another tax hike proposal is hardly surprising, but, curiously enough, this new tax would target the pensions of the AFL-CIO's own members.
Improving business confidence is the great missing ingredient holding back a strong economic recovery. Serially threatening the economy with new taxes and new regulations is no way to improve the confidence of America's families and businesses of a prosperous future, says Heritage:
- If such taxes were enacted in the United States, it would sound the death knell for much of the domestic financial industry.
- Given their penchant for proposing job destroying tax hikes, the AFL-CIO's financial transaction tax proposal should not be entirely surprising.
- What is odd in this case is that the proposal would reduce the value of investments in union pension funds which are among the most frequent traders of stocks, making one wonder who the unions think they're helping.
This latest tax increase, combined with all the taxes President Obama proposed to increase in his budget and all the taxes increased in the health care legislation, begs the question: when will all the tax increases finally stop? Unfortunately for United States taxpayers the end does not appear in sight, says Heritage.
Source: Curtis Dubay, "Stock Transaction Tax: Yet another Tax Increase," Heritage Foundation, December 4, 2009.
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