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OrMag: the congressman also appeared on Portland conservative radio to talk about this.  We know of no other Oregon media who has presented it as you will see below.  This kind of thing is why we need the Tea Party cadre in the House.
Oregon Pete's Progressive Lightspeed
Transaction Tax


Winter, 2011 -- Oregon Congressman, Peter deFazio was just on FOX with Neil Cavuto, debating deFazio's attempt to re-introduce (or raise the current) FDR tax on stock market trades.  This tax is one of the reasons the Great Depression lasted so long --  deFazio says it is about time Wall Street began to pay its fair share, and that the money brought in will be used to create jobs, and pay down the debt. Cavuto was yelling at him before the end of the discussion, among other things pointing out that identical taxes like this are one of the reasons Europe is on the verge of final financial collapse.

Here's the truth as best as we can sort it out.  First, deFazio (D-Oregon 4th District) denies the charges as follows:

I oppose this bill because it wrongly taxes all financial transactions, rather then just focusing on the Wall Street speculators who got us into this current economic mess.  Americans making normal day-to-day transfers of money should not be subject to a tax on these transactions.

That's right off his website. According to him, he didn't introduce the bill (HR4646), Chaka Fattah of Pennsylvania did, and it has no co-sponsors.

Here's the problem

Mr. deFazio says he believes Wall Street speculators caused our "current economic mess."  He said it in that quote above. By saying this he is illustrating that he is either a liar or an idiot.  Our current economic mess was caused by Chris Dodd and Barney Frank, who were serving in the Congress with him when the Democrats retook it halfway through Bush the Second's second term in the White House.  Those two with deFazio's support created and supported a new kind of home financing in America.  They put the strong arm on financial institutions involved in the real estate arena, forcing them, Fannie Mae and Freddy Mac to back home loans to people who couldn't afford to buy a tent, let alone a house. 

Was Bush involved in this fiasco?  To the extent that he didn't raise hell and the veto (even if Congress could have overturned it) when the Dems created it, yes.  The Bush boys are compassionate types.  The road to economic Hell is paved with good intentions.

Then, when the predictable foreclosures started coming in, the big financial outfits began to look for ways to spread the risk.  Derivatives began to appear.  These are "financial instruments."  You can think of them as being certificates that are from the same family as stocks or bonds, but which are a lot like your crazy uncle.  It is risky to fund his latest great idea because that pot full of goo he has made up probably will not defuse the radioactive emissions of all the reactor fuel rods stored at Hanford.  (He can't even pronounce "nuclear," and has never  had a job in the field, let alone a degree in physics.)

Some "derivatives" have a thematic connection with the Chicago art of commodity trading.  For the average member of the middle class, the entire process is a complete mystery.

The banks knew it would fail, but couldn't or wouldn't fight it

Barney Frank, Chris Dodd and Mr. deFazio, among others, had changed the American home buying experience from a rational arrangement made between sane financial organizations and responsible citizens into a bizarre, irresponsible, destined-to-fail financial mess that would make their impoverished voting blocs as happy as dry frogs discovering a pond full of government-subsidized lily pads.

That is the chief original cause of our current, long-standing economic problem, and Mr. deFazio was part of it.  He is also part ot the continuing problem, since his bunch in Congress created and passed the Stimulus Bill that didn't stimulate anything except government bureaucracies and big union (private and public) retirement plans, the explosion of the size of government, the monstrous socialized medicine debacle, all those ghastly crony capitalism deals like Solyndra, the funding of cowboy poetry festivals in Nevada and all the rest.

It is as a result of votes cast by Mr. deFazio (D-Oregon, 4th District) that our national debt has risen like a missile leaving a silo since Obama became president and Reid and Pelosi took over Congress.  People like deFazio in both houses of Congress are the reason that this nation has now gone one thousand days without a budget bill, and will soon have created a larger national debt than every other American president and congress combined.

Let's "occupy" their computers

Yes, of course.  This transaction tax legislation would have been fine with him if it had just nailed the evil rich.  They're capitalists.  Capitalism is evil.  Nancy Pelosi said one of her favorite philosophers was Mao Tse Tung.  I know who Peter deFazio believes in. 

Do you know who pays his beloved taxes on the big corporations? Try this: when the government taxes Ford, those amounts are included in the price you pay when you buy a car.  All corporate taxes from those on Wall Street stock transactions to local Costco property taxes are in the price you pay for anything you purchase.  If you buy a television set, you pay the taxes of every business that is involved -- from the supplier of the raw material to the manufacturer to the shipper to the store where you get the new flat screen.

That is the evil of corporate taxes.  Peter deFazio has made sure that they are hidden inside everything you buy.  He doesn't care how many times you are taxed, as long as you never understand what is actually going on. 

That sort of subterfuge from people like him always leaves us puzzled.  Conservatives hate the middle class?  Democrats are the bulwark that protects the middle class from the corporate robber barons? Any time you hear things like that, know you are listening to a liar, or if it's a member of the media, also possibly a fool. 

(LL
)

© 2012 Oregon Magazine