Rep. Ellison Introduces Inclusive Prosperity Act
WASHINGTON—Rep. Keith Ellison (D-MN.) has introduced legislation that would raise billions to invest in our economy by taxing Wall Street financial transactions. The Inclusive Prosperity Act (H.R. 1464) would tax the sale of stocks, bonds and derivatives. The tax imposed will be 0.5 percent on stocks, 0.1 percent on bonds, and 0.005 percent on derivatives or other investments.
“America’s working families need their country to invest in them again,” Rep. Ellison said. “The money raised from a wafer-thin tax on Wall Street’s high frequency trades could raise hundreds of billions of dollars to invest in our families, protect our environment and increase opportunity for all Americans. If the United States joins the dozens of other nations already benefitting from a financial transaction tax, we can create millions of jobs, while also reducing dangerous market volatility.”
The funds raised by the Inclusive Prosperity Act could be used to strengthen America’s families, communities and economy by supporting state and federal investments that improve our health, rebuild our crumbling physical infrastructure, and create good paying jobs.
Computerized stock and bond markets make adding a small tax relatively easy. The tax also would make high frequency trading unprofitable, which could reduce the excess speculation on commodities like food and gasoline.
Almost 30 nations have some form of a financial transaction tax and the U.S. had a similar tax from 1914 until 1966. The United Kingdom has had a tax on stock trades for decades – the same rate proposed in H.R. 1464 and their volume of trading has grown robustly. Eleven nations in the European Union will implement one soon. Supporters of a form of financial transactions tax include business leaders such as Microsoft founder Bill Gates, Dallas Mavericks’ owner Mark Cuban, and Berkshire Hathaway chairman and CEO Warren Buffet.