DFLer will stress “Occupy” issues against Bachmann

Democrat Anne Nolan of St. Cloud says her congressional campaign against Republican Rep. Michele Bachmann will focus on many of the same issues that the Occupy Wall Street movement has highlighted.

“How do we get the economy moving again? How do we make it fair for the 99 percent, not just the 1 percent?” said Nolan. “Let’s have a financial transactions tax and put a sales tax on speculative transactions on Wall Street and hold accountable the folks who crashed the economy in the first place and raise the resources to rebuild it.”

Nolan works for a small business that helps employers develop flexible work schedules for their employees. She ran unsuccessfully three times for the state Legislature. So far she is Bachmann’s only DFLer challenger.

In response to Nolan’s candidacy Rep. Bachmann sent out a fundraising email soliciting “emergency contributions,” to help her defend against what she characterized as her new “Occupy Wall Street” opponent.

  • rhoning

    Occupy Investors! Let’s crush them.

    The transaction tax is a cascading tax that investors and pension funds will pay. There are as many as a dozen transactions that will be taxed in the chain of processing a purchase of stock. We will pay tax on all of the other transactions.

    IMF states in the Final Report For The G-20, June 2010 about the financial transaction tax, “Its real burden may fall largely on final consumers rather than, as often seems to be supposed, earnings in the financial sector…A tax levied on transactions at one stage ‘cascades’ into prices at all further stages of production.”

    Don’t forget that the bid-ask price will increase from 1 cent to an estimated 25 cents or more. That alone would cost around 1 percent yield loss each time you or your fund manager buys and sells.

    Swedish Finance Minister Anders Borg warns often that the same FTT in Sweden saw implementation costs of the tax out-run its own revenues. FTT revenues achieved 3 percent of revenue projections before subtracting reduced GDP revenue losses in all other areas.

    From the UK’s European Scrutiny Committee quoting the European Commission’s 1223 page FTT Impact Assessment (even before the damaging relocation effects): a 3.43% fall in EU GDP equates to a fall in economic output worth €421 (£362) billion and a 0.34% fall in employment equates to a loss of 812,000 jobs.

    The recent EFAMA study finds that if FTT were in place for 2011, it would have cost investors and pensions an astounding EUR 38 billion for UCITS funds alone.

    Analysis conducted by BlackRock finds the cascading tax will cost money market funds in Europe 7.82 percent annually, effectively destroying their existence. Equity fund yields will be reduced by 2.52 percent annually. That would reduce retirement account yields by one half over a lifetime career. No promises of tax breaks could ever make up for that.