Sure, it’s an overstatement to say it alone could save the world, but a tiny tax on Wall Street trades could stack up to hundreds of billions of dollars in revenue that could be used for essential public projects like addressing climate change, fighting poverty, or better enforcement of our nation’s consumer protection laws.
Wall Street Tax (also called Financial Transaction Tax or Robin Hood Tax) proposals in Congress range from 0.03 percent (3 cents on every $100 traded) to 0.5 percent; revenue projections vary accordingly, from $352 billion over ten years to more than $350 billion every year. That’s a lot of funding for programs that are right now suffering under a false premise of austerity that has slashed the social safety net and stymied progressive proposals that could make real headway in solving some of our most pressing issues.
It’s also clear that a Wall Street Tax could save our markets from harmful volatility. Today is the fifth anniversary of the 2010 “flash crash” that shocked markets, causing the Dow Jones to lose nearly 1,000 points in a matter of minutes. Nearly $1 trillion was temporarily erased from the market.
By Emily Myers
Lisa Gilbert, director of Public Citizen’s Congress Watch division, at the rally outside the White House
If you’ve lived in Washington, D.C., for a while, you might not be fazed by thirty people chanting and brandishing a fifteen-foot inflatable flashlight reading “end dark money.” But if you’re new to the city like me, this sort of political protest is exciting and noteworthy. It is also necessary.
Yesterday’s rally at the White House, one of 55 in cities and towns across America, served to raise the voices of citizens above the “voice” of money A March analysis by Public Citizen found that only 47 percent of federal contractors disclose contributions to 501(c)(4) groups that could influence elections, barely one third fully disclose their donations to 501 (c)(6) groups and only 27 percent of the largest contractors disclose the details of contributions to both types of groups.
Behind closed doors, federal contractors can use taxpayer money to elect politicians who may grant them preferential treatment and work for their interests.
This is unacceptable.
Public Citizen and other public interest organizations delivered a petition with over 550,000 signatures to President Barack Obama urging him to sign an executive order requiring federal contractors divulge their campaign spending.
In this year’s State of the Union address, President Barack Obama couldn’t have been more transparent. He said, “[A] better politics is one where we spend less time drowning in dark money for ads that pull us into the gutter, and spend more time lifting young people up, with a sense of purpose and possibility, and asking them to join in the great mission of building America.”
With that sentence, he reaffirmed what we all know is the case: Voters deserve to know who is trying to influence their elected officials by contributing money. Without knowing who is behind political spending, we cannot make truly informed decisions and we lose a critical check on corruption in our moneyed political system.
This Sunshine Week (March 15-21), we applaud the president for speaking out against the wave of “dark money” that has overtaken U.S. elections, and our response is: “We agree. Act now.” The president should start by issuing an executive order to require federal government contractors to disclose all of their political spending. He has the power to do so at any time.
Dark money is a problem no matter who it comes from, and according to the Center for Responsive Politics, more than 40 percent of the outside expenditures in the 2014 elections were made by groups that did not fully disclose their donors. But dark money is especially troubling when it comes from government contractors.