This video from “The Robin Hood Tax” in England is a perfect example of how an idea that sounds perfectly reasonable is actually an insidious cancer on society, and why you would be a moron to vote for it. It seems simple enough – a very small tax on every financial transaction (.05% in this case) to generate revenue for social programs. The reason to institute such a tax? To make those greedy banks pay for bringing the global economy to a screeching halt.
The idea is being pushed in Great Britain and is gaining steam among the left in the US.
But here is the problem. This isn’t a plan to tax bank profits. It’s a plan to tax bank transactions. Guess who carries out those transactions. You do. This is a plan to tax YOU, not the bank.
Do you honestly believe the banks are going to say “Oh, the government wants to take hundreds of billions of dollars charged against every transaction. I guess we’ll pay for that out of our gigantic bonuses rather than passing the cost down to the consumer.”
Hell no! The banks are going to say “Hmmm… the government wants to charge us one half of one percent on every transaction, so we’re going to implement a transaction fee of 2% on every transaction so we can cover a) the tax, b) the cost of complying with the tax and c) our bonus for figuring out a clever way to make people with far less money than we pay for the tax. After all, why would we want to lose money on a transaction when we can shift the cost.”
As a net result, anybody who supports this tax is not pushing a tax on fat cat bankers. They are pushing a tax on people who use ATMs or trade stocks or transfer money between accounts.
The problem with Democrats and these wonderfully creative tax plans they come up with is they fundamentally fail to tax who they want to tax, and they end up taxing down. Their big shot banking friends will ensure they don’t see significant tax increases and the little guy that uses the bank to cash his check every week will bear the worst of the this – yet again.
Republicans are friendly with the banks on purpose. Democrats are friendly with the banks out of pure-hearted stupidity.