FDR-PAC calls for expanding movement to tax
securities transfers

(EIRNS)--FDR-PAC, the political action committee established in 1996 by LaRouche Democrats to fight against Nazi-style economic policies, is urging political leaders around the country, to take up the example of Pennsylvania's State Rep. Harold James, and introduce legislation to tax speculative financial transfers, as a means of generating the funds to provide for the general welfare.

"With the introduction of H.B. 393 on Feb. 5, Rep. James has launched a movement for economic sanity," said Nancy Spannaus, the PAC's executive director. "A Securities Transfer Tax of 0.2% would serve as a disincentive to financial speculation destructive to the economic wellbeing of the general population, and encourage stable investment and job creation. It would resolve an issue of tax fairness--since, at present, speculation in securities is not even subject to the sales tax that everybody has to pay to buy the necessities of life.

"And, lastly, it would fill the coffers of state treasuries with billions of dollars, thus exposing the fact that it is totally unnecessary for states like Pennsylvania--and many others around the nation--to put the lives of their citizens in danger by cutting health and human services. Representative James has estimated that in Pennsylvania alone, the nominal tax--$2 on $1,000 worth of stock--would yield over $1.5 billion.

"Representative James's actions can, and should, be replicated in other states around the nation. There is already a law on the book in New York State, which taxes stock transfers, although--at the behest of the bankers who run New York City--the tax is currently immediately rebated to the stock brokers upon whom it is assessed. That can be reversed.

"It is encouraging that Rep. James's tax has now been taken up in New Hampshire, where Rep. Roland Hemon introduced a securities transfer tax, and invited in a LaRouche associate t discuss its potential. This should be just the beginning, since, all around the nation, legislators are being pressured to throw the poorest citizens to the wolves, and to continue the disastrous neglect of basic infrastructure, such as transport, water, and urban services, on which citizens' safety equally depends.

"The question of taxing securities is by no means a partisan one. It should be obvious to all citizens that speculation, like other forms of gambling, is a cancer on our economy, and should be discouraged through taxation--at the same time that monies have to be provided for the health and welfare of the general population. Not all states have gone as far as Pennsylvania's Gov. Ridge in deliberately enacting policies that have murdered the working poor and disabled, but many are moving in that direction, under the `advice' of typically deranged economists. Governor Ridge, if he doesn't change his tune, should be made a horrible example. But in the meantime, let's raise the funds by taxing speculation!"