The lawmakers proposal follows a similar measure being discussed by the European Union (EU).
Washington (3 Nov. 2011) - Two U.S. lawmakers have announced that they intend to introduce companion bills to tax U.S. financial transactions at a rate of 0.03 per cent and encouraged the congressional deficit-reduction panel to more closely consider their proposal.
Senator Tom Harkin, Iowa, and Representative Peter DeFazio, Oregon, said that the tax would apply the tax to stocks, bonds and all derivatives contracts and would take effect on Jan. 1, 2013.
“There’s no question that Wall Street can easily bear this modest tax,” Harkin said at a press conference.
The lawmakers proposal follows a similar measure being discussed by the European Union (EU). The EU proposal is for 0.1 per cent tax on trading of stocks and bonds among the 27 member nations.
While Harkin and DeFazio have introduced transaction tax measures in the past two years they have yet to be considered by either chamber.
The legislation will face fierce opposition from trade groups representing the largest U.S. banks and trading firms.
The lawmakers see one of the benefits of the proposal as curtailing high frequency trading from the market.
“We have to begin to rebuild the real economy and it starts with getting rid of the most egregious, unproductive and volatile of these super high-volume, quantitatively driven traders,” DeFazio said.
The National Union of Public and General Employees (NUPGE) welcomes the increased attention that the Financial Transactions Tax proposal (commonly referred to as the Robin Hood Tax) is receiving in the United States.
For more information:
- Download: Robin Hood was Right - NUPGE
- Robin Hood Tax Canada
- Canadians for the Robin Hood Tax on Facebook
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE