It's Time To Pass The "Robin Hood" Tax (HR1579)

Teabaggers and other right-wingers in the GOP's base like to believe that the Republican Party (and its elected officials) are against taxes, and will always work to lower taxes -- but that is just not true. The Republicans are against progressive taxes (where those making the most money pay the most in taxes), but they have no problem with regressive taxes (where the tax eats up far more of a poor or middle class workers income while taking very little from the rich). It turns out that they are only against taxes that would affect Wall Street, the corporations, and their other rich buddies.

A perfect example of this is in the state of Texas, which has been under almost complete Republican control for about 20 years now. Texas has no progressive income tax, because that would force the rich (and the corporations) to pay taxes. Instead, the major tax revenue in Texas comes from a regressive state sales tax, which even taxes many items necessary to a person's livelihood (like transportation, clothing, all but the most basic food items, etc.). This tax takes a substantial amount of the income of a poor or middle class person, but is negligible to the incomes of the rich. Meanwhile the corporations receive tax cuts and subsidies that keep them from having to pay any kind of taxes (sales, property, business, etc.).

Rep. Keith Ellison (D-Minnesota) has noted this Republican preference for sales taxes over income taxes, so he has introduced a bill that would institute a small tax on the sale of stocks and other items in the stock markets. His bill (HR1579) would bring in billions of dollars in new revenue to the federal government each year, and the tax imposed would be small enough that it wouldn't affect trading. It has been dubbed the "Robin Hood" tax.

Have the Republicans jumped on board to support this new sales tax? No. In fact, they have blocked it from coming up for a vote. They have blocked it because it would mainly affect their rich Wall Street buddies, instead of ordinary working Americans (by giving an exemption to those making less than $50,000 a year). And while the Republicans don't mind taxing the poor and middle class (since someone has to pay the government's bills), they will never approve of any tax that affects the rich (or the corporations).

This is a good bill, and we should applaud Rep. Ellison for introducing it. It would pump new revenue into the federal government (which could them pump it into the economy, spurring economic growth), and stop the need to cut programs helping the poor, the unemployed, the elderly, and our children. We need to encourage Congress to pass this bill -- and vote against any elected official this November who opposes it (whether they are Republican teabaggers or Democratic blue dogs).

If we can tax the poor or buying essential goods and services they need to live, then we should also be taxing the rich for the purchases they make on Wall Street.