Tuesday, February 26, 2013

Five Reasons the World Is Catching on to the Financial Transaction Tax

Financial transaction tax

SOURCE: AP/ Yves Logghe

Progressive America Rising via Center for American Progress

Campaigners and European trade unions dress as Robin Hood while calling on European Union leaders to go ahead with a financial transaction tax to mobilize money to help poor people hit by the economic crisis, in front of the European Council building in Brussels on May 23, 2012.

By Adam Hersh and Jennifer Erickson

Feb 25, 2013 - It has been more than 70 years since John Maynard Keynes wrote about the value of a financial transaction tax in “mitigating the predominance of speculation over enterprise in the United States.”

A financial transaction tax works by levying a miniscule fee on the estimated $2.9 trillion of daily financial activity through the trading of stocks, bonds, and derivatives in U.S. financial markets, based on our analysis. The tiny tax makes some of the most speculative unproductive trading unprofitable, thus steadying markets and promoting real investment while raising much-needed revenues. Though many countries around the world already have a financial transaction tax in place, the United States does not yet levy such a fee on trading.

While the idea of a modest financial transaction tax—or FTT, as it is often known—has been around for a long time, with budget balances and economic growth strained in the aftermath of the Great Recession policymakers around the world are taking a new look at the tax.

Below are five reasons why the world is catching on to the financial transaction tax as a smart policy tool.

A financial transaction tax would bring in much-needed revenue

The U.S. government is currently operating at its lowest level of revenues in more than 60 years. A 2010 report from the International Monetary Fund identifies the financial sector of the economy—particularly in the United States—as substantially undertaxed.

Even a tiny financial transaction tax would raise tens of billions of dollars in much-needed revenue. A tax applied at a very low rate—for example, a 0.117 percent tax on stocks and stock-options trading, a 0.002 percent tax for bonds, and a 0.005 percent tax for futures, swaps, and other derivatives trading—would raise an estimated $50 billion a year, according to our calculations. To put that amount into perspective, $50 billion in essence pays for all of America’s veterans health services, which ran to $50.6 billion in 2012. Historical evidence and economic theory show that financial transaction taxes have the potential to raise substantial revenues without impeding the function of capital markets. By keeping constant the relative transaction costs of trading in different markets, a financial transaction tax can raise revenues without distorting market behavior.

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Saturday, February 23, 2013

‘Demographics’ Are Not Simply Passive Numbers, They Also Often Rise Up and Rebel

Reflections on the 2012 Election

By Bill Fletcher, Jr.
Progressive America Rising

Feb 22, 2013 - Leading up to November 6, I found myself focused on the matter of voter suppression and electoral shenanigans committed by the Republicans. This concern was not for nothing. Prior to and on Election Day there were myriad attempts to subvert the vote, particularly the vote of people of color. Frivolous voter challenges started well before Election Day itself, again targeting African American and Latino voters.

What was most striking about the 2012 election, then, was that in the face of this attack on our right to vote, there was something akin to a popular revolt by the African American and Latino electorate. Latinos voted over 70% for Obama and African Americans over 93%. But those figures do not tell enough. It was the turnout that was so significant.

Despite efforts by the political Right to dampen African American enthusiasm for Obama, using the issue of same-sex marriage, this tactic failed dismally. And Romney’s cynical anti-Latino approach, as evidenced during this primary campaign, came back to bite him in the rear.

It was more than this, however. It was something that you had to feel if you waited in line to vote.

I went three times to try to engage in early voting.

The first two times the line was out the building and I decided to return at a later date.

On the third time, I thought I had arrived early enough only to discover that the line started well within the building. I was on line for two hours, and this was early voting.

Around the USA, there were stories like that one -- people standing in line for one to seven hours in order to vote.

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Wednesday, February 20, 2013

Tea Party Origins: ‘We’re Shocked!’

Study Confirms Tea Party Was Created by Big Tobacco and Billionaire Koch Brothers

By Brendan DeMelle

Progressive America Rising via HuffPost

Feb 11, 2013 - A new academic study confirms that front groups with longstanding ties to the tobacco industry and the billionaire Koch brothers planned the formation of the Tea Party movement more than a decade before it exploded onto the U.S. political scene.

Far from a genuine grassroots uprising, this astroturf effort was curated by wealthy industrialists years in advance. Many of the anti-science operatives who defended cigarettes are currently deploying their tobacco-inspired playbook internationally to evade accountability for the fossil fuel industry's role in driving climate disruption.

The study, funded by the National Cancer Institute of the National Institute of Health, traces the roots of the Tea Party's anti-tax movement back to the early 1980s when tobacco companies began to invest in third party groups to fight excise taxes on cigarettes, as well as health studies finding a link between cancer and secondhand cigarette smoke.

Published in the peer-reviewed academic journal, Tobacco Control, the study titled, 'To quarterback behind the scenes, third party efforts': the tobacco industry and the Tea Party, is not just an historical account of activities in a bygone era. As senior author, Stanton Glantz, a University of California, San Francisco (UCSF) professor of medicine, writes:

"Nonprofit organizations associated with the Tea Party have longstanding ties to tobacco companies, and continue to advocate on behalf of the tobacco industry's anti-tax, anti-regulation agenda."

The two main organizations identified in the UCSF Quarterback study are Americans for Prosperity and Freedomworks. Both groups are now "supporting the tobacco companies' political agenda by mobilizing local Tea Party opposition to tobacco taxes and smoke-free laws." Freedomworks and Americans for Prosperity were once a single organization called Citizens for a Sound Economy (CSE). CSE was founded in 1984 by the infamous Koch Brothers, David and Charles Koch, and received over $5.3 million from tobacco companies, mainly Philip Morris, between 1991 and 2004.

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Saturday, February 16, 2013

Original Sin: Why the GOP Is and Will Continue To Be the Party of White People

 

BY SAM TANENHAUS
Progressive America Rising via The New Republic

Feb 10, 2013 - With Barack Obama sworn in for a second term—the first president in either party since Ronald Reagan to be elected twice with popular majorities—the GOP is in jeopardy, the gravest since 1964, of ceasing to be a national party. The civil rights pageantry of the inauguration—Abraham Lincoln's Bible and Martin Luther King's, Justice Sonia Sotomayor's swearing in of Joe Biden, Beyoncé's slinky glamor, the verses read by the gay Cuban poet Richard Blanco—seemed not just an assertion of Democratic solidarity, but also a reminder of the GOP's ever-narrowing identity and of how long it has been in the making.

"Who needs Manhattan when we can get the electoral votes of eleven Southern states?" Kevin Phillips, the prophet of "the emerging Republican majority," asked in 1968, when he was piecing together Richard Nixon's electoral map. The eleven states, he meant, of the Old Confederacy. "Put those together with the Farm Belt and the Rocky Mountains, and we don't need the big cities. We don't even want them. Sure, Hubert [Humphrey] will carry Riverside Drive in November. La-de-dah. What will he do in Oklahoma?"

Forty-five years later, the GOP safely has Oklahoma, and Dixie, too. But Phillips's Sunbelt strategy was built for a different time, and a different America. Many have noted Mitt Romney's failure to collect a single vote in 91 precincts in New York City and 59 precincts in Philadelphia. More telling is his defeat in eleven more of the nation's 15 largest cities. Not just Chicago and Columbus, but also Indianapolis, San Diego, Houston, even Dallas—this last a reason the GOP fears that, within a generation Texas will become a swing state. Remove Texas from the vast, lightly populated Republican expanse west of the Mississippi, and the remaining 13 states yield fewer electoral votes than the West Coast triad of California, Oregon, and Washington. If those trends continue, the GOP could find itself unable to count on a single state that has as many as 20 electoral votes.

It won't do to blame it all on Romney. No doubt he was a weak candidate, but he was the best the party could muster, as the GOP's leaders insisted till the end, many of them convinced he would win, possibly in a landslide. Neither can Romney be blamed for the party's whiter-shade-of-pale legislative Rotary Club: the four Republicans among the record 20 women in the Senate, the absence of Republicans among the 42 African Americans in the House (and the GOP's absence as well among the six new members who are openly gay or lesbian). These are remarkable totals in a two-party system, and they reflect not only a failure of strategy or "outreach," but also a history of long-standing indifference, at times outright hostility, to the nation's diverse constituencies—blacks, women, Latinos, Asians, gays.

But that history, with its repeated instances of racialist political strategy dating back many decades, only partially accounts for the party's electoral woes.

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Thursday, February 14, 2013

Usurious Credit and Debt as Our Prison Cages

Breaking the Chains of Debt Peonage

By Chris Hedges
Truthdig.com

Feb 3, 2013 - The corporate state has made it clear there will be no more Occupy encampments.

The corporate state is seeking through the persistent harassment of activists and the passage of draconian laws such as Section 1021(b)(2) of the National Defense Authorization Act—and we will be in court next Wednesday to fight the Obama administration’s appeal of the Southern District Court of New York’s ruling declaring Section 1021 unconstitutional—to shut down all legitimate dissent.

The corporate state is counting, most importantly, on its system of debt peonage to keep citizens—especially the 30 million people who make up the working poor—from joining our revolt.

Workers who are unable to meet their debts, who are victimized by constantly rising interest rates that can climb to as high as 30 percent on credit cards, are far more likely to remain submissive and compliant.

Debt peonage is and always has been a form of political control. Native Americans, forced by the U.S. government onto tribal agencies, were required to buy their goods, usually on credit, at agency stores. Coal miners in southern West Virginia and Kentucky were paid in scrip by the coal companies and kept in perpetual debt servitude by the company store. African-Americans in the cotton fields in the South were forced to borrow during the agricultural season from their white landlords for their seed and farm equipment, creating a life of perpetual debt. It soon becomes impossible to escape the mounting interest rates that necessitate new borrowing.

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Saturday, February 2, 2013

Want to Bust a Recession? Create More Jobs, Organize More Unions…

Organizing McDonald's and Wal-mart, and Why Austerity Economics Hurts Low-Wage Workers the Most

By Robert Reich
Beaver County Blue via HuffPost

Nov 30, 2012 - What does the drama in Washington over the "fiscal cliff" have to do with strikes and work stoppages among America's lowest-paid workers at Walmart, McDonald's, Burger King, and Domino's Pizza?

Everything.

Jobs are slowly returning to America, but most of them pay lousy wages and low if non-existent benefits. The Bureau of Labor Statistics estimates that seven out of 10 growth occupations over the next decade will be low-wage -- like serving customers at big-box retailers and fast-food chains. That's why the median wage keeps dropping, especially for the 80 percent of the workforce that's paid by the hour.

It also part of the reason why the percent of Americans living below the poverty line has been increasing even as the economy has started to recover -- from 12.3 percent in 2006 to 15 percent in 2011. More than 46 million Americans now live below the poverty line.

Many of them have jobs. The problem is these jobs just don't pay enough to lift their families out of poverty.

So, encouraged by the economic recovery and perhaps also by the election returns, low-wage workers have started to organize.

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