Liberals are gleeful over a House Democrat proposal to provide the middle class with a $1,000 tax credit for single people or $2,000 tax credit for married couples earning under $200,000. The bill was sponsored by Maryland Democrat Congressman Chris Van Hollen would fund the ten-year $1.2 trillion price tag by imposing a 0.1% fee on stock transactions. It would also limit the tax deduction currently in place for CEO bonuses.
Hollen cited that fact that other nations currently have such fees in place. Under his proposal, a $100,000 portfolio that is sold would generate a fee of $100. Currently, the same trade might not incur any fees at all if the underlying securities consisted of no transaction fee securities.
Rep. Hollen says the average family would not feel the pinch at all. At the same time, it is unlikely that anyone would be thrilled at having to pay a fee on top of other fees they may already incur.
The measure stands a greater chance of lining a kitty litter box than it does of being passed. The spokesman for House Speaker John Boehner affirmed that he will not consider any tax increase at all. Boehner has never voted to increase taxes.
The GOP has what they believe is a much better approach to helping the middle class: lower tax rates across the board. The GOP hopes to work with Democrats and the president to overhaul the tax code and produce lower tax rates. Republicans believe simplifying the tax code would encourage further investment in the United States.