If you are in the stock market you may see increased taxes soon to fund a new job program Congress is trying to pass before the end of the year. The legislation is currently being drafted in the House by Democrats and they are seeking to place a tax on stock market investors in order to create badly needed jobs.
Now that the $787 billion stimulus package has failed to ease the unemployment numbers facing the country, Democrats will now reach into their playbook and raise stock market taxes. The .25 percent tax is part of the “Let Wall Street Pay for the Restoration of Main Street Act of 2009,” and will give Congress the new power to create jobs.
The bill doesn’t come without skeptics and Americans aren’t convinced the federal government is able to take on this noble challenge. The bill is deceiving from the get go as it hopes to raise $150 billion, half of which will pay down the deficit and then create a new jobs reserve. This sounds vaguely similar to another bureaucratic entity which requires money and produces little results.
The White House is facing declining poll numbers and insiders point to the rising unemployment numbers as the main reason lawmakers are so unpopular. However, House leader Nancy Pelosi raised some concerns about the tax hike on Wall Street and said the only way this new program will work is if other countries pursue similar tactics.
According to the sponsors of the bill Rep. Peter DeFazio-D OR and Rep. Ed Perlmutter-D CO, the program would need to create jobs that pay at least the median wage in the U.S. Also the proposed legislation would prevent recipients of stimulus money from returning to the cookie jar.
Legislator’s claim the new tax wouldn’t hurt Wall Street and said it was about time they ponied up to the table and supported Main Street. Among the leading groups who support the new tax are the Service Union Employees International (SEIU) and the AFL-CIO union.
It looks like all those White House visits by Andy Stern, SEIU's front man, are about to pay off in the form of more wealth redistribution.
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