Comment Text:
Making Bush tax rates permanent will require bipartisan support. Republicans will insist on adherence to the Norguist no tax rate increase pledge. Democrats will require increased revenues to replace the loss which will come with no change in existing tax law. There is a $600 trillion market which will accommodate both conditions.
Derivatives.
The $600 trillion market for Derivatives is 40 times the value of the US stockmarket - yet most Americans have never heard of it. A tiny 0.5% transfer fee when these billion dollar contracts trade would raise $4 trillion over 10 years - enough to cover the Bush tax rates (which are scheduled to bring in an additional $3.8 trillion at current levels). Something both sides can agree to and still declare victory.
No change from current income tax brackets. No cuts to Medicare or Social Security.
Whoever announces this solution first will reap a publicity windfall which will improve their standing in the polls and bring in substantial campaign contributions. It is a race to be the leader who puts this idea into the public domain and champion a position both sides can support.
See www.howtopayoffthenationaldebt.wordpress.com for details.
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+1
jimkainz2p · 4 days ago
Representative Raul Grijalva of Arizona who leads the Progressive Caucus in Congress has submitted a People's Budget that includes a tax on Derivatives which I have discussed with his office staff in Tucson:
From: James Kainz
Sent: Friday, August 19, 2011 7:10 PM
To: [email protected]; Mishkin, Kelsey
Cc: [email protected]
Subject: Atom bomb in the Budget battle
Making Bush tax rates permanent will require bipartisan support.
Republicans will insist on adherence to the Norquist no tax rate increase pledge. Democrats will require increased revenues to replace the loss which will come with no change in existing tax law. There is a $600 trillion market which will accommodate both conditions.
Derivatives.
The $600 trillion market for Derivatives is 40 times the value of the US stock market - yet most Americns have never heard of it. A tiny 0.5% transfer fee when these billion dollar contracts trade would raise $4 trillion over 10 years - enough to cover the Bush tax rates (which are scheduled to bring in an additional $3.8 trillion at current levels). Something both sides can agree to and still declare victory.
No change from current income tax brackets. No cuts to Medicare or Social Security.
Whoever announces this solution first will reap a publicity windfall which will improve their standing in the polls and bring in substantial campaign contributions. It is a race to be the leader who puts this idea into the public domain and champion a position both sides can support.
See www.howtopayoffthenationaldebt.wordpress.com for details.
I have met in person with a member of Representative Grijalva's staff in the Tucson office and supplied them with 3 copies of the pamphlet.
From: Mishkin, Kelsey
Subject: RE: Atom bomb in the Budget battle
To: "'James Kainz'"
Date: Monday, August 22, 2011, 11:27 AM
Thanks James, take a look at the alternative budget we offered this year:
The People’s Budget includes:
Wall Street Gaming Tax A tax on derivatives, credit default swaps and other exotic financial products, including both sides of futures and forwards, option premiums and foreign exchange spot transactions. This is a tax levied directly against the types of opaque, complex trades that Wall Street manipulators used to inflate their profits and were the direct cause of the financial crisis.
You can also read EPI’s technical analysis for more information.
Thanks for sharing!
Regards,
Kelsey H. Mishkin | Legislative Assistant
Congressman Raúl M. Grijalva
Arizona District 7
202.225.2435 | Fax.202.225.1541
Subject: RE: Atom bomb in the Budget battle
To: "KelseyMishkin"
Cc: [email protected], [email protected]
Date: Wednesday, August 24, 2011, 6:19 AM
Mr. Mishkin,
Thank you for your thoughtful response to my message and the link to the EPI Working Paper #290.
My reaction to that thorough analysis is decidedly mixed:
I am delighted that it includes a tax on Derivatives.
I am disappointed that the projected revenue is only $63.5 billion per year.
The tax I proposed in the pamphlet I gave to Representative Grijalva's district office staff in Tucson last March raised 1/2 trillion dollars per year.
I believe that difference is a game changer. I fear that The People's Budget is dead on arrival in the Republican lead House. A stand alone legislative act focusing exclusively on Derivatives could pass if married to an extension of Bush tax cuts for "the job creators".
I volunteer to work with you or a staff member of Representative Grijalva or The Progressive Caucus if you would like my assistance in re-crafting the details of this proposed legislation. My full time effort is devoted to advancing this cause.
I believe there is an opportunity to make this the defining issue of 2012. I appreciate the global view of The People's Budget as a counter to Paul Ryan's budget. I believe a more focused bill concentrating exclusively on the Derivatives transfer fee actually has a greater chance of passage because it can be used as a bargaining chip to obtain Republican support if balanced with their issue of priority - tax cuts for the top income brackets. The only way to obtain a CBO scoring on the stand alone Derivatives transfer fee is to propose a separate bill.
My congratulations on your including legislation for a Derivatives tax into the public forum for consideration.
I would be delighted to assist your efforts in any way I can.
I have talked directly to Representatives Karen Bass, Laura Richardson and Maxine Waters of California about this and provided them with copies of my pamphlet "How to Pay Off the National Debt". I will keep you posted on their participation.
Sincerely,
James F Kainz
