912-Western Iowa-Council Bluffs Message Board › More tax legislation

More tax legislation

user 10257032
Wilber, NE
Post #: 290
I received this letter from Johanns via email today. We have a lot of work to do. Also I would like to add that a friend of mine told me that his company informed them that they will be taxing their health care benefits starting the beginning of 2014. First I have to question why most people weren't aware of that but also I'm wondering why they waited till right after the election to do it.

Here is Johanns' letter:
Dear Marjorie:

Thank you for contacting me regarding legislation to impose a tax on financial transactions. I appreciate having the benefit of your views on this issue.

On September 14, 2012, Congressman Keith Ellison (D-MN) introduced H.R. 6411, the Inclusive Prosperity Act. The bill would impose a transaction tax, up to 0.5 percent, on the sale of stocks, bonds, derivatives, and other financial investments. H.R. 6411 would provide an off-setting tax credit for taxpayers with an annual income less than $50,000. This legislation was referred to the House Committee on Ways and Means for consideration. This bill is just one of several transaction tax bills introduced in the 112th Congress.

You may be interested to know that on November 2, 2011, Senator Tom Harkin (D-IA) introduced S. 1787, the Wall Street Trading and Speculators Act. This legislation would impose a 0.03 percent tax on non-consumer financial transactions involving stocks, bonds, futures, options, swaps, and credit default swaps. Representative Peter DeFazio (D-OR) introduced companion legislation, H.R. 3313, in the House of Representatives.

On March 16, 2011, Congressman Chaka Fattah (D-PA) introduced H.R. 1125, the Debt Free America Act. The bill would impose a 1 percent tax on all financial transactions, including cash transactions, checks, credit cards, bonds and stocks. H.R. 1125 would also provide taxpayers with a 1 percent tax credit for gross incomes up to $250,000 until 2018. This legislation was referred to several House committees for consideration.

Although I am not a member of the Senate Finance Committee, which would have jurisdiction over a financial transactions tax, I will monitor these proposals closely. The imposition of a financial transactions tax on consumer transactions may disproportionately hurt low-income individuals and would also lead to increased costs for Americans.

While I understand and share Americans' concerns regarding our nation's unsustainable level of spending, I am worried that imposing additional excise taxes on stock and bond transactions would only add to the burden consumers are forced to bear in this weak economy. In addition, a financial transactions tax would hinder U.S. competitiveness in the international financial market, thus further impeding job creation. Furthermore, a financial transactions tax that includes cash, check, and credit card transactions could discourage consumer spending at a time when we need to get our economy moving again.

Again, thanks for taking the time to contact me. Your comments help me to represent our state, so please do not hesitate to reach out at any time. For up-to-date information about my work in the Senate, I invite you to visit www.johanns.senate.gov and sign up for my e-Updates or link to my Facebook and Twitter pages. I look forward to hearing from you in the future.

Very truly yours,

Mike Johanns
United States Senator

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