Financial Transaction tax

Hello.

This morning we have the usual conservative politics with a new wave.  We have had the Tea Party /Right wing effort to stop an extension of the debt ceiling.

Now we have "moderate" proposal from the Gang of Six, which is essentially the Simpson-Bowles plan. That is another conservative, not so crazy, right wing assault on benefits and working people.   See the post below by Dean Baker, And, since it is not the crazy Tea Party, the press is picking up on it.

Get as many posts up as you can, letters to the editor, responses on web news stories.  In each case argue for the opposite- a financial transaction tax.  The information you need is on the DSA site;  here. http://www.dsausa.org/docs/taxday.html

intro; 

A: Yes.  Despite what conservatives often say, there are several potential sources of money to pay for the needs of our country.  Perhaps the most promising is a tax on the trading of financial assets, a financial transaction tax, often called an FTT or a “Tax on Wall Street Speculators.”

Q:  How would an FTT work?

A: An FTT would be a small tax on all trading in stocks, currencies, and debt products such as treasury bills and bonds (and futures and options contracts on all of these). Think of it as a very small sales tax. It could be a tax of $1 on every $400 of stocks traded (0.25%); one-quarter of one percent, and $1 on every $800 dollars of currency or debt traded (0.125%), one-eighth of one percent.

California Budget Crisis- Sources of revenue

It is clear that the California budget is in crisis and we can not simply cut our way out of the crisis.  Budget cuts and lay offs make the recession worse.

School funding reveals the nature of crisis.  In the last two years the k-12 budget “solutions” have cut 4.6 billion dollars from the schools. We have larger classes and fewer teachers.  School reform has stopped- except for the politicians hot air.  School funding makes up a total of 30% of the state budget.  Any crisis in the state budget and any cuts in the state budget will make school budgets worse.

California will need to raise taxes to fund the schools and to repair the social safety net.  Anti tax radicals and Republicans  oppose any tax increases.   The state ‘solutions’ of the last three years depended upon receiving federal stimulus money.  The stimulus monies are almost finished and with the Republican winning control  of Congress there will probably not be more funds.

The world wide economic crisis was created by  U.S. finance capital and banking, mostly on Wall Street ,ie. Chase Banks, Bank of America, AIG, and others.   Finance capital produced a $ 2 trillion bailout of the financial industry, the doubling of U.S. unemployment rate and the loss of 2 million manufacturing jobs.  More than 15   million people are out of work.  At the national level almost all of the projected deficit through 2020 will be the result of three factors: the Great recession, the tax cuts of the early 2000s under George W. Bush, and the hundreds of billions of dollars of war spending.

The economic stalemate in California has produced school funding cuts far beyond reasonable levels.  At present,  the state ranks 47^th among all states in its per-pupil spending, spending $2,856 less per pupil than the national average.

  In California we need to spend more state money to improve schools, to develop roads and infrastructure, and to create jobs.  Those who are well educated are more employed and paying taxes while those with less education, those who leave school, are in a prolonged economic crisis.  It is well documented that our schools and our universities are in a finance crisis.  We need to be preparing young people for new jobs and to create new industries.  The success of students in higher education will significantly determine California’s future competitiveness and prosperity.   Improving education, including both k-12 and higher education, makes California more likely to attract investment and the creation of new jobs and new industries.