August 11, 2007
Back the Soprano' Tax Plan to restore financial and ethical equity.
Like the mob, reputable and not so reputable financial enterprises 'whet their beaks' on all commercial flows of capital.
(Wall Street firms are expected to pay out a record $23.9 billion in bonuses this year. 12/20/06 USA Today)
(Meanwhile the financial types have stripped a tenth of a point here and a half a point there from these capital flows, enriching themselves until the speculative 'excessive risk' schemes meet their inevitable and repetitive denouement. (from: Cognitorex , "John Doe Pays" ))
One manifestly equitable countervailing economic policy would be to place a one one hundreth of one percent Value Added Tax on all capital flows.
The financial mafia ('Them') enrich themselves by taking a bite out of America's capital flows at every instance while 'Us', the creator's of this wealth, need Moms and Dads working multiple jobs to eat and provide the capital for this system.
In a bad year, when capital and equity shrink due to the excesses of the financial mob's schemes, the little guy has to pony up to replace the capital. In this manner, John and Jane Doe repeatedly have to pay an effective greed tax and pay more for their car loans, their mortgages and their credit cards until the cosa nostra bankers replace their depleted capital.
As our capital washes around the globe for economic enterprises, both good and bad, and for hedging and for asset speculation, there is no reason that the 99.9% of the population that suffers the cost of the downturns couldn't charge a way tiny `rent' for this resource.
Direct these tax flows to Social Security and Medicaid and they would thus be amply funded and capitalism would manifestly not miss a heart beat.