Americans who are serious about addressing income inequality have long recognized that the United States needs a Robin Hood Tax—a charge on financial transactions proposed by campaigners who have argued since the Wall Street meltdown of 2008 that “banks, hedge funds and the rest of the financial sector should pay their fair share to clear up the mess they helped create.”
National Nurses United and other unions, along with Congressional Progressive Caucus leaders such as Congressman Keith Ellison, D-Minnesota, have for a number of years said that the United States should follow the lead of European countries that have developed financial-transactions taxes. Explaining his proposal for an Inclusive Prosperity Act as an alternative to the destructive austerity agenda of Republicans and some centrist Democrats, Ellison said in 2013:
A lot of people in Washington like to talk about reducing the debt and deficits. Well if you really care about reducing the deficit, how about asking Wall Street speculators to pay their fair share? This bill will add a tax of a fraction of a percent on transactions made by the same Wall Street firms and stock traders who crashed our economy in 2008. This tax alone will generate up to $300 billion a year in revenue, stabilizing the deficit and allowing us to invest in the things that matter—education, roads and bridges, and health care for our seniors and veterans.
Unfortunately, that logic tended to be dismissed not just by top Republicans but by top Democrats.
With backing from House minority leader Nancy Pelosi, D-California, Maryland Congressman Chris Van Hollen moved Monday to present an “action plan” that is designed to frame the Democratic message in the new Congress. At the heart of it is a proposal to address the rapid redistribution of wealth upward in the United States with a small tax on high-volume stock trades and a new initiative to aid working-class individuals and families.
“This is a plan to help tackle the challenge of our times,” declared Van Hollen, a key figure in the House Democratic Caucus and a particularly influential voice in debates on economic policy. “We want a growing economy that works for all Americans, not just the wealthy few.”