Democrats Will Propose ANOTHER Tax

Seriously, they probably would tax the pennies on your eyes:

House Democratic leaders are considering imposing a new tax on stock transactions to fund a jobs bill, leadership sources tell The Hill.

Rep. Ed Perlmutter (D-Colo.) has been making the case for such a Wall Street tax, and House leaders have started paying attention as they look for a way to pay for the jobs bill, leadership sources said.

The idea is attractive because it’s very small, likely 0.25 percent of each trade. And since Wall Street is perceived by many as having caused the economic slump, brokers have little political standing to try to stop it.

It also has the support of the nation’s largest labor union.

The AFL-CIO, one of the Democratic Party’s most powerful allies, suggested the idea in August.

The group’s policy director, Thea Lee, estimated the tax could raise between $50 billion and $100 billion per year.

Small- and medium-sized investors would hardly notice a transaction tax, but major trading firms may see it as a significant threat to their profits.

Leading financial lobbyists say the tax would harm the economy.

“It would impact all Americans, from retirees to [the] self-employed to parents saving for their kids’ education. It would place permanent handcuffs on the economy,” said Scott Talbott, senior vice president at the Financial Services Roundtable, which represents 100 large financial companies.

“It would clip the wings of the economy just as it is starting to recover,” he added.

Rep. Peter DeFazio (D-Ore.), a senior member of the Transportation and Infrastructure Committee, said that in addition to the transaction tax, there is talk of using money from the $700 billion Wall Street bailout and other sources. But leaders aren’t looking at an increase in the gas tax.

“There’s very little talk about user fees,” DeFazio said.

Leaders said they are trying to pass a jobs bill before leaving for Christmas, at least in the House.

And the legislation could include a renewed emphasis on highway construction.

Committee Chairman Jim Oberstar (D-Minn.) said that transportation will be a “centerpiece” of the jobs legislation. DeFazio said that though only 4 percent of the stimulus package earlier this year went to transportation, it created 25 percent of the jobs.