Congressman Steve Kagen (D-Appleton) is involved with a bill that would add a fee to Wall Street trades. A transfer fee of .25 percent would be tacked onto transactions done by speculators. He believes it’s a chance for financial groups to return the favor of being bailed out by tax payers. Kagen says the revenue generated from these “socially useless trades” would be used to pay down the national debt and reinvest into America’s infrastructure.
The fee would be exempt for non-profits, people with pensions and 401K funds, and for the first $100,000 of trading.
The Wisconsin Republican Party criticizes the proposal saying it will increase the cost of credit; dampen hopes of economic recovery as jobs leave; and cause diminishing returns on investments like 401K retirement savings. The GOP claims House Democrats are divided on the issue.
Brian Moon reports (:62)