Here's our new Petition that I will publish on our Rally Congress page this weekend. Please add your comments on this thread ASAP. Trying to keep it short and sweet. Molly Goad did an excellent job with the editing and she included comments that were already sent to us. Thanks for your help. We want everyone to sign and send this new Petition and it should put out all new fires over the next month or two.
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Dear Congressman,
I'm writing to kindly ask you to vote against any bill that includes a financial-transaction tax. Two bills in particular have proposed this tax as a way to pay for jobs recovery programs: âLet Wall Street Pay for the Restoration of Main Street Act of 2009â and âTransparent Markets Act of 2009.â Supporters view this tax as a way to generate tax revenue quickly, however, the tax's negative impact will be widespread, it will cause job losses, and it ultimately won't produce the tax revenue leaders are seeking.
A transaction tax will stifle market makers which includes speculators and small-business traders. Market makers will trade less, markets will become illiquid, and spreads will widen significantly. All investors and hedgers will face lower selling prices and higher purchase prices, costing everyone more money. U.S. traders will seek better prices at financial centers abroad, and our financial exchanges will falter. As people trade less in the U.S., brokerages will be forced to close their doors. The technology sector, which services many exchanges, brokers, and traders, will consequently take a hit.
It's also interesting to note that Wall Street â the group sponsors are targeting â most likely will pass the cost on to Main Street. Average citizens who had nothing to do with the last financial crisis will end up bearing the brunt of this tax. The tax revenue supporters predict the tax will generate is grossly inaccurate: As traders quit trading, there will be less transactions to tax, not to mention there will be less capital gains tax garnered from these traders. One bill includes narrow exemptions for small retail investors (first $100,000 of transactions) and for retirement plans, but business traders will blow through that amount very quickly.
In addition to small investors, the technology industry, and our financial exchanges, farmers will suffer at the hands of this tax. Speculators bid up prices when needed to give farmers an incentive to plant more crops. If speculators are trading less, farmers will plant less. The tax will hurt their ability to hedge their products at a fair price. Sponsors claim it's a "tiny tax," but farmers consider it large enough to wipe out their narrow profit margins. Farmers running out of profits can lead to food shortages; no one wants that to happen.
Some leaders have suggested this tax as a way to assist undeveloped countries in dealing with climate damage and for social causes. Those issues certainly need funding, however, the money should come from general contributions, not from a financial-transaction tax that will hurt both developed and undeveloped economies.
The proposed financial-transaction tax will be implemented on all transactions â profitable and unprofitable. Traders already pay capital gains when they make money; how can the U.S. justify taxing traders when there's no income or profit on a transaction? The financial markets are one of our greatest assets and industries. It's clear this tax will cause an unpleasant chain of events that will negatively impact the economy; its effects will be felt everywhere. We can't allow this tax to succeed. Please help us defeat it by saying "NO" to any legislation that includes this tax.
I thank you very much for your time and for considering these points.
Sincerely,
Robert A. Green
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Dear Congressman,
I'm writing to kindly ask you to vote against any bill that includes a financial-transaction tax. Two bills in particular have proposed this tax as a way to pay for jobs recovery programs: âLet Wall Street Pay for the Restoration of Main Street Act of 2009â and âTransparent Markets Act of 2009.â Supporters view this tax as a way to generate tax revenue quickly, however, the tax's negative impact will be widespread, it will cause job losses, and it ultimately won't produce the tax revenue leaders are seeking.
A transaction tax will stifle market makers which includes speculators and small-business traders. Market makers will trade less, markets will become illiquid, and spreads will widen significantly. All investors and hedgers will face lower selling prices and higher purchase prices, costing everyone more money. U.S. traders will seek better prices at financial centers abroad, and our financial exchanges will falter. As people trade less in the U.S., brokerages will be forced to close their doors. The technology sector, which services many exchanges, brokers, and traders, will consequently take a hit.
It's also interesting to note that Wall Street â the group sponsors are targeting â most likely will pass the cost on to Main Street. Average citizens who had nothing to do with the last financial crisis will end up bearing the brunt of this tax. The tax revenue supporters predict the tax will generate is grossly inaccurate: As traders quit trading, there will be less transactions to tax, not to mention there will be less capital gains tax garnered from these traders. One bill includes narrow exemptions for small retail investors (first $100,000 of transactions) and for retirement plans, but business traders will blow through that amount very quickly.
In addition to small investors, the technology industry, and our financial exchanges, farmers will suffer at the hands of this tax. Speculators bid up prices when needed to give farmers an incentive to plant more crops. If speculators are trading less, farmers will plant less. The tax will hurt their ability to hedge their products at a fair price. Sponsors claim it's a "tiny tax," but farmers consider it large enough to wipe out their narrow profit margins. Farmers running out of profits can lead to food shortages; no one wants that to happen.
Some leaders have suggested this tax as a way to assist undeveloped countries in dealing with climate damage and for social causes. Those issues certainly need funding, however, the money should come from general contributions, not from a financial-transaction tax that will hurt both developed and undeveloped economies.
The proposed financial-transaction tax will be implemented on all transactions â profitable and unprofitable. Traders already pay capital gains when they make money; how can the U.S. justify taxing traders when there's no income or profit on a transaction? The financial markets are one of our greatest assets and industries. It's clear this tax will cause an unpleasant chain of events that will negatively impact the economy; its effects will be felt everywhere. We can't allow this tax to succeed. Please help us defeat it by saying "NO" to any legislation that includes this tax.
I thank you very much for your time and for considering these points.
Sincerely,
Robert A. Green