Written by Douglas C Smyth   

Progressives in the US vainly tout a financial transaction tax, a tax on stock transactions; Europeans are now suggesting such a tax to finance the necessary bailouts of the Euro's financial troubles. "Mainstream" politicians in the US, however, don't even mention such a tax, yet it's already collected--on every stock transaction--and then refunded!

This tax raises hundreds of billions, but costs traders only a fraction of a cent. And then, it is refunded, so that it won't hurt those poor bank trading sections, or those poor billionaires who make millions of trades. A financial transaction tax would actually be a near ideal tax: it is progressive, in that it would tax those with highest incomes most heavily, painlessly, but it would not hurt "job creation," because it is on stock trading, which trades assets: speculation doesn't create many jobs. The tax would be a slight disincentive to speculation: a positive effect.

Further, the one argument against a transaction tax--that it would make us uncompetitive with European markets--could become irrelevant if the EC adopts it. Ironically, the Brits argue that the tax would make them uncompetitive with us!

Why are taxes on the wealthy so difficult to accomplish politically? There has been a profound and radical upward redistribution of income and wealth since the "Reagan (counter) Revolution," one of the reasons why the wealthy need to be more heavily taxed, but it's also why it's so difficult to do so politically. The lightly taxed top 5%, 1% and .01% have aggressively used their burgeoning wealth to: build a "conservative" empire of propaganda tanks, media outlets, and political clients that have changed the conversation so radically that reality is no longer reflected in the information accessible to most Americans.

A union publication, Solidarity, has a headline on its current cover: "America's NOT Broke": the subheading explains that the problem with our economy isn't out-of-control spending, but an unfair tax system. This is only partly true. Most of the debt and unjustified deficits were caused by Bush II's tax cuts, his illegal wars and the unfunded Medicare Part D, providing prescriptions at prices drug companies can inflate with impunity: Medicare is not allowed to negotiate prices. The wars, the bloated war/"Defense" budget, and Medicare's gifts to Big Pharma have all increased the inequality promoted by the tax "reforms" from Reagan to Bush II (and not rescinded, yet, by Obama). Deficits caused by recession are justified, but they should have been large enough to get us out of it.

We live in a world in which the Selfish Class can megaphone with millions of dollars, while ordinary people are beaten and arrested (on Wall Street), even if they "peaceably" assemble, "to petition the Government for a redress of grievances." (guaranteed by the First Amendment).

The "job creators", our stinking rich, have all but won control: will The People win it back? The Occupy Wall Street movement is only a small beginning. We need millions in the streets.