By Sarah Anderson for RealClearMarkets
In the name of "doing something", politicians are trying again to abuse tax legislation to reach radical political agenda items. Last week, it was Sens. Sanders and Wyden who sought a minimum wage hike through the back door when the Senate MP failed to pave the way for them to get a minimum wage of $ 15.
In this round, progressives are seeking a blanket "financial transaction tax" to allegedly contain Wall Street hedge funds at the expense of ordinary Americans' savings and investments.
Another week in Washington, however, means another week of politicians on both sides of the aisle, intentionally or unintentionally misunderstanding the markets, and we find they are using the current hot button issue to advance their agenda.
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This is an agenda that broadly increases the size and scope of government at the expense of the people. Introducing a new tax to affect the behavior of individual actors – corporations, individuals, or other businesses alike – is one of many that often turn to tactics.
Of course, trojan horses like this are constantly being sold to be in the best interests of the public, or even – as in the case of the cryptic HR 1 legislation of the Democrats in Congress – as "For the People" because they had the audacity to name it Invoice.
Whether in the marketplace of ideas or in the financial market itself, the constant need of politicians to “do something” in response to a non-ideal situation in our country leads to one toxic policy after another.
The recent GameStop trade controversy, in which the "little" retailers on Robinhood and the "big, bad" hedge fund managers on Wall Street were at odds, naturally found everyone involved in "doing something" in the Congressional Court. ”
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On this occasion, it is not surprising that regulatory left, who have been investing for decades, put forward their latest excuses to unleash their progressive, market-destructive tax agenda, this time pushing for a "Financial Transaction Tax" (FTT).
This proposal is exactly what it sounds like – a tax levied on all financial transactions, be it buying and selling stocks, bonds or other financial instruments. In other words, a tax on all investments.
While this Warren-Sanders-like proposal, put forward by members of Squad member Rep. Rashida Tlaib (D-Mich.), Was supposedly aimed at the "big, bad" hedge funds, it would – like most other government programs – Doing this worst harms those it purports to help.
In the case of the financial transaction tax, it should be clear to those who understand the markets that this proposal is nothing more than a tax on investments. That is, the very investment that is the real engine of all economic growth, that enables Americans to save for retirement or their children, and opens doors for ordinary citizens far from Wall Street to put their money to work .
Every time politicians try to regulate markets, they point their fingers at supposedly “bad actors”, while in practice their policies target the majority of Americans. After all, more than half of Americans invest in the stock market. A transaction tax is a smart financial investment tax.
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Even, or perhaps especially, a financial transactions tax would destroy the savings of even those who invest passively, such as taxpayers. B. Retirees whose pensions are based on frequent business.
The case of the financial transaction tax is particularly egregious, and proponents of sound policy making and American economic prosperity should speak loudly against the efforts and excuses to put it into effect.
It is nonsensical and utterly ignorant to denigrate at any time those who dare to increase their wealth.
However, this is especially true at a time when the government has disempowered so many Americans through COVID-19 lockdowns, systematic dollar devaluation, and ongoing rampant overregulation by those who care most about their power and prosperity Americans least of all.
Syndicated with permission from RealClearWire.
Sarah Anderson (@smayranderson) is the Director of Policy at FreedomWorks.
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