By Andrew Gibson
This Saturday, our nation celebrates the 239th anniversary of the signing of the Declaration of Independence. This day should be used to reflect on the ideals and principles upon which this country was founded so as to remind us of the work still to be done in order to achieve goals enshrined in that all-important document.
The Declaration of Independence affirms America’s self-governance. It states that “governments […] derive[e] their just powers from the consent of the governed,” and that all are treated equal under the law. As Public Citizen strives to ensure that all citizens are represented in the halls of power, our members and supporters should keep the founders’ philosophy in mind as we celebrate America’s birthday with our family and friends.
Public Citizen members and supporters like YOU are making a real difference in helping grow the momentum around the call for a tax on Wall Street transactions.
Last month, we joined in the Million Strong petition push as part of a worldwide action to make sure the eleven European nations that are negotiating a collaborative financial transaction tax stay strong and come out with a good proposal.
Here in the states, the campaign to achieve a tax on Wall Street trades captured an important win when the media last week began asking candidates if they will stand with Main Street or Wall Street when it comes to tamping down high-speed trading and market speculation by instituting a tiny fee on stock, bond, and derivative trades.
And, just last week, U.S. Sen. Bernie Sanders (I-Vt.) got a ton of much-deserved press for his proposal to fund free public college tuition by instituting a Wall Street speculation fee. At the same time, Sen. Sanders also introduced a Senate companion bill to U.S. Rep. Ellison’s Inclusive Prosperity Act, the first time the bill has been offered in that chamber. It’s clear that Sen. Sanders’ proposal will do a lot to push the public debate leading up to the 2016 elections toward looking at solutions like a Wall Street tax.
In addition to creating hundreds of billions of dollars in revenue, a tiny tax on trades on financial products could make a huge difference in taming Wall Street’s volatility.
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.