Taxing the Speculators

http://www.nytimes.com/2009/11/27/opinion/27krugman.html?_r=1&scp=1&sq=taxing%20the%20speculators&st=cse

---------- Forwarded message ----------
From: barry levine 
Date: Fri, Nov 27, 2009 at 10:54 AM
Subject: re: Taxing the Speculators
To: letters@nytimes.com


To the Editor:

    The Financial sector has acquired vast and unhealthy influence over our society in the last three decades.  An increasingly large fraction of its energies are spent on non-productive games rather than on empowering innovation and production in society.  A government that was serious about serving the people, rather than the donors would  find ways to harness this energy.  The Tobin tax on currency speculation is a good start. More important would be a steeply graduated capital gains tax.  Stock purchases that are held less than an hour do nothing to fuel industry. Tax any profits on them at 100%. Stock purchases that are held two years or more provide the capital on which the real economy runs. Tax profits on them at 15%. Stocks held for intermediate periods should be taxed at intermediate rates. Until we do both these things, our stock markets will be driven by those with the fastest trading algorithms and the shortest wire-links, and our national governments will be hostage to speculators playing with careers and industries as if they casino chips.

Barry Levine