You've heard of this one, haven't you? Nancy Pelosi was sending out positive vibes at the end of last week ... positive, that is, if you like the idea of the Imperial Federal Government collect a 1% (initial) tax on all financial transactions ... any financial transaction at any financial institution.
You haven't heard about this? No surprise. There's an election coming you know. Democrats aren't fond of telegraphing their various tax schemes just before you go to the polls. My guess is that you'll hear plenty about this if the voters of this country somehow manage to leave the Democrats in power. Drudge did, however, run with a bit over the weekend wherein Nancy Pelosi indicated that the idea had merit. On December 4th of last year CNSnews.com ran with a story detailing Pelosi's endorsement of a "global" tax on stock trades and other financial transactions that she said at a news conference could bring in $150 billion annually.
So ... just in case you're actually thinking of voting, maybe this explanation will help you make up your mind.
A financial transaction tax would most likely start out at around 1%. If you made a $500 deposit into your savings account, $5 would go to Washington. If your employer automatically deposited you $1,845 paycheck into your account every two weeks, $18.45 would go to the federal government. That's what happens when your money goes INTO your account? But what about when it comes OUT? Well, that's another financial transaction, isn't it? Charge a $80 dinner for two to your Visa card, 80 cents to the government. Let's say your car payment is $390 per month. Every time you make that payment $3.90 goes to the government. Over 36 months this would amount to $140. Now remember .. you already paid income tax on this money ... and here comes another 1% going in, and 1% coming out.
Mention this to a Democrat ... and they will surely tell you that you are crazy, that they would never consider something like this. But hold on a minute ... you need to know that this idea of a financial transaction tax is very popular right now in Europe. Some have even proposed such a tax as a way to support the United Nations, and I've already told you about Pelosi's love for the idea. So ... do you feel lucky? Go ahead! Put your favorite Democrat back into office. Then you can react with amazement a few months down the road when the Democrats - still in power thanks to your efforts --- announce that something like a temporary transaction is going to be necessary to take care of our deficit. The truth, of course, is that if they got the tax it would not be used to cover the deficit ... it would just be more money for them to spend on their various vote-buying schemes. Temporary? Yeah, right. The only thing about this financial transaction tax that would be temporary would be the rate. Again ... how long would it take them to tell you that they just "had" to raise the rate to 2%, but just for a while, mind you .. just for a while until whatever crisis our dear leaders in Washington were dealing with passed.
Are you beginning to see what the stakes are here four weeks from tomorrow? We're not playing some video game here folks. The threat is real, and if you aren't on the front lines to fight these people I promise you that your children and grandchildren will damn you for walking away from this battle.