Sending Office: Honorable Peter A. DeFazio
Request for Cosponsor(s)
LAST CHANCE: Cosponsor the Putting Main Street FIRST Act
Endorsed by Public Citizen, Americans for Financial Reform, AFL-CIO,
Center for Economic and Policy Research, Institute for Policy Studies
Deadline Wednesday, 5/3 NOON
Current cosponsors: Blumenauer, Cartwright, Conyers, Garamendi, Grijalva, Khanna, Lowenthal, Napolitano, Norton, Pocan, Sarbenes, Schakowsky, Scott, Shea-Porter, Slaughter
On May 6, 2010, the Dow Jones index lost almost 9% of its value in a matter of minutes. Hundreds of billions of dollars were wiped off the share prices of household name companies. American share and futures indices went into a tailspin. This event quickly
became known as the “flash crash.”
To commemorate the anniversary, I am introducing legislation that would implement a Wall Street tax to discourage high volume, rapid-fire speculative trading that causes instability in the market, a primary cause of the 2010 flash crash. Much of the excessive
risk and volatility on Wall Street is caused by high-volume, short-term speculative trading. Speculators using complex algorithms flood the markets with trillions of trades, holding assets for milliseconds, impeding the flow of capital needed for growing
The Putting Main Street FIRST (Finish Irresponsible Reckless Speculative Trading) Act would place a miniscule .03 percent tax on all transactions of stocks, bonds and derivatives, meaning a $10,000 trade would be taxed $3. According to the Joint Committee
on Taxation, the bill is estimated to raise $417 billion over ten years.
The Putting Main Street FIRST Act protects average Americans. Those with tax-favored accounts, such as college savings 529 plans, IRAs, and health savings accounts will receive a tax credit for the amount of any taxes paid. For retail investors, a fee of
a fraction of a percent would make little difference to a person holding stocks as a long term investment.
Additionally, the Putting Main Street FIRST Act will not encourage trading to move overseas. The United Kingdom has had a transaction tax for centuries and has the highest volume exchange in Europe. In addition, if someone trades overseas, the broker making
the trade is still responsible for paying the tax.
It’s time to stop speculative trading, time to level the playing field, and it’s time to put Main Street FIRST. To cosponsor, please contact Rina Wulfing at firstname.lastname@example.org or 5-0541.
Peter A. DeFazio
Member of Congress
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