Actually I would put a 1% sales tax on all trades in stocks, bonds and derivatives. Plus a 50% tax on all annual income over 1 million with exemptions for one time windfalls such as lottery winnings.
A little bit of austerity shouldn’t hurt the rich who are the ones clamoring for a balanced budget. Oh and social security tax on all income with not cap.
From Pro Publica: http://www.propublica.org/thetrade/item/the-03-solution
by Jesse Eisinger
ProPublica, Feb. 6, 2013
The unwritten rule of Washington debates about taxing and spending is to never consider anything new. But wouldn’t it be wonderful if the pressure of the next few months’ debate changed that?
Last month, 11 European countries, including France and Germany, moved forward on introducing a minuscule tax on trades in stocks, bonds and derivatives. The tax goes by many names. It’s often called a Tobin tax, after the economist James Tobin. In Europe it goes by the more pedestrian financial transaction tax. In Britain, it goes by the wonderful Robin Hood tax, and is supported in an often clever campaign.
Continue reading at: http://www.propublica.org/thetrade/item/the-03-solution