You are a father of three and just got a promotion at work pushing you up to an income of $80,000 per year. You have just been given the opportunity to contribute to company sponsored 401K retirement plan. You engage a financial planner and decide to buy some stocks, bonds and a mutual fund that includes some derivatives. This saving plan will be tough on you and your family, depriving you of every dollar of the raise, but providing some hoped for security for your retirement in the future. You choose to invest $5,000 – every penny of your raise – and are told by the financial planner you owe him not only his fee, but a new tax imposed by a Democratically sponsored bill: an investment tax. As the portfolio is managed, the tax seems to appear every single time the financial planner makes a trade to keep the portfolio ahead of the volatile stock market. By the end of the year the bill is several hundred dollars. Not only is the raise completely invested in the 401K and not available for your current spending needs, but you are bringing home less than before your raise to cover the new investment tax.
Thanks to Representative Keith Ellison (D-MN) and the Congressional Progressive Caucus this tax on savings and investing in America could be coming to you (HR 6411). Cloaked as swipe at “greedy wall street bankers”, the fact is that the proposed law requires the person doing the investing to pay the tax if they live in the United States and make more than $50,000 (individuals) or $75,000 (family). The tax would be 0.5% on stocks, 0.1% on bonds and .005% on derivatives. While the “Progressives” of this so-named Congressional Caucus like to claim this will “stick it to the greedy”, the fact is that this will be more likely to:
- Hurt the poor and middle class who would like to invest their money and secure their future.
- Create a new pot of money to be wasted by the Federal government on more worthless stimulus programs and damaging progressive “wealth redistribution”.
- Put a chilling effect on trading of stocks and bonds (this is their stated intent), thus leading to stagnation of your investment in less productive that have lower returns over time.
- Set a precedent for a way to collect a “global tax” to finance foreign entities such as the United Nations interested in “Global Governance”.
Free citizens of the U.S. and those who want to avoid being trapped in poverty or never realizing the gains of your hard work, should work to stop such taxes.