Saturday, November 13, 2010

The solution that's been forgotten


Everybody whines about the defect and the national debt but nobody's willing to actually do something about it. As we all know there's only one way to pay it off and that's not by lowering taxes which has been done four major times under Bush and 16 times under Obama. Republicans keep screaming about spending increases but I haven't seen any increases that weren't paid for in the last two years. Most of the loans to the auto industry has been paid back. But then we have the Bush legacy to deal with. That would be two wars at over two trillion dollars. Then the medicare drug doughnut hole that wasn't paid for and of course the tax cuts for the wealthy and bank bail out.

Funny how some ten years ago somebody figured out a way to get out of this mess with the least amount of pain. A simple solution that I'm surprised nobody thought of it sooner. It involves just one red cent. By putting just a one penny tax on all the transactions at the stock exchanges we could pay off the entire debt and defect and have money left over. Each day on the Dow alone some 200+ million shares change hands. Just one penny per share would make all the difference. And that's just on one exchange. In just a few short years the debt would be gone. Then once we get to the positive side of the debt curve we could start really rebuilding this country. Imagine having a 14 trillion dollar surplus. We could have education and health care covered. We could be lending money to other countries instead of being beggars to China. No more scraping money together to fix a road or bridge or build a hospital. And with the debt paid off we could actually start lowering or eliminating other taxes. Let's see the republicans argue that one. Ladies and gentlemen we're not going to just lower your taxes we're going to eliminate them!

15 comments:

Jerry Critter said...

200 million times one penny is 2 millon dollar. Two million dollars a day comes out to 730 million per year. Let's say a billion dollars per year. Let's say we missed it by a factor of 10, so a penny a day will get us 10 billion dollars per year.

While 10 billion dollars is nothing to sneeze at, it will make only a small dent in the deficit.

Randal Graves said...

I can't believe you left out slashing the Pentagon's budget by about 99%.

The Blog Fodder said...

Dollar a gallon gas tax would solve a few problems too.

Demeur said...

That 2 million would only be on the Dow. There are other exchanges and trades.

Our military is now larger than all the militarys of the world combined. What do we need a bazooka to hunt rabbits?

At a dollar a gallon tax on gas you would effectively eliminate the working poor and middle class. They couldn't afford to get to work. Slavery was outlawed in this country well over 100 years ago.

Tom Harper said...

"By putting just a one penny tax on all the transactions at the stock exchanges we could pay off the entire debt and defect and have money left over."

That's class warfare! I knew you were one of them America-hating socialists :)

BBC said...

Interesting theory, don't know if it would work unless tried.

It's our way to just stick everything on the next generations.

Jerry Critter said...

Yes, the 2 million is only the Dow. That's another reason I added the factor of ten to get us up to 10 billion per year.

I am not against your proposal. A fee per share is a good idea. It is just that a penny per share doesn't give us as much money as your implied.

I would be in favor of a higher fee and, at the same time, limit the fees that financial institutions charge. Make them pay the fees out of their profits. They already are making a ton of money. Just look at the bonuses they are currently paying.

S.W. Anderson said...

Good concept, Demeur, but Thom Hartmann's version would get it done faster. Plus, it would discourage some of the so-called lightning trades that are nothing more than literally gaming the system. His idea is for a 1 percent tax on all securities trades.

Jerry Critter said...

Demeur,
Did you mean one percent instead of one cent? That will make a big difference the amount of money.

BBC said...

I wish I had a penny for every stupid thing I've seen, heard and read over the years.

an average patriot said...

That is a good ides but only a start. Like all good idea's here it won't go. You know what bothers me is the asses on the right are giving Obama credit for what Bush did and people are starting to think that life long failure of a war mongerer was a great President.

jadedj said...

Why a penny? Why not a dollar? A lousy dollar.

BBC said...

I'm trying to recall how long since I paid any taxes other than state sales tax and property taxes and such.

Come to think of it, getting rid of the state sales tax and going to an income tax would benefit me now that I'm an old fart.

SY said...

Wow.. what a great idea.. honestly i've never heard this before but it sounds like a very good start to getting the deficit down

S.W. Anderson said...

Average Patriot wrote: ". . .people are starting to think that life long failure of a war mongerer . . ."

LOL, I know what you mean. But taking your words literally, being a warmonger was something Bush actually succeeded at.