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A Wall Street Mini-Tax Could Benefit the Poor and Reduce Public Debt

By Ronald M. Glassman & Gerald E. Scorse ~ DISSIDENT VOICE ~ Truthout ~

With great fanfare, politicians on the left are thinking big on tax reform: a 70 percent rate on incomes over $10 million, a wealth tax on the super-rich, estate taxes as high as 77 percent. With no fanfare at all, the nonpartisan With great fanfare, politicians on the left are thinking big on tax reform: a 70 percent rate on incomes over $10 million, a wealth tax on the super-rich, estate taxes as high as 77 percent. With no fanfare at all, the nonpartisan Congressional Budget Office (CBO) has made the case for thinking small. According to the CBO, a mini-tax on sales of stocks, bonds and other holdings could boost revenues by scores of billions a year.

The estimate came in December 2018 when the CBO released its list of options for cutting the federal deficit. For the period 2019-2028, a Wall Street tax of 0.1 percent would bring an extra $777 billion into the Treasury. Market declines were predicted early on, along with lower capital gains and lower trading volumes. Even so, after factoring in all the headwinds, the tax still produced average annual revenue increases of almost $78 billion.

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