More than 20 progressive organizations representing millions of voters are putting their weight behind a five-point agenda for the next stage of Wall Street reform.
What these groups will formally announce Tuesday, in an event featuring Massachusetts Sen. Elizabeth Warren, sets a high but practical standard for what a candidate would have to embrace to be considered a progressive on reining in the financial sector.
The Take On Wall Street campaign says it intends to ensure that the voices of working people and consumers are heard above the power and influence of Wall Street.
The Washington Post reports that Take On Wall Street will combine the efforts of “some of the Democratic parties’ biggest traditional backers, from the American Federation of Teachers and the AFL-CIO to the Communications Workers of America.
”The campaign is pressing five changes that the coalition says would lead to a fair financial system that works for Main Street and working families, not just Wall Street billionaires. Most are embodied in legislation that is currently pending in Congress:
● Close the carried interest loophole. That’s the tax code provision that allows hedge fund and private equity managers to pay a lower tax rate on their earnings than what ordinary workers pay on what they earn. The Carried Interest Fairness Act (H.R. 2889) would end this inequity.
● End the CEO bonus loophole. That loophole allows corporations to write off a large share of CEO pay as a tax deduction – by calling it “performance-based” pay. The result is that taxpayers are subsidizing CEO pay to the tune of $5 billion a year. That amount of money would cover Head Start for more than 590,000 children, or pay the health care costs of more than 480,000 military veterans, or fund full scholarships for more than 600,000 college students. The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act (H.R.2103) would end taxpayers subsidizing CEOs and allow those dollars to be used for such priorities as education and health care.
● End “too big to fail.” Both Democratic presidential candidates, Hillary Clinton and Bernie Sanders, say they agree with the principle that banks that are “too big to fail are too big to exist,” but Clinton is adamantly opposed to the one thing many economists and banking experts believe would help avert the need to bail out a “too big to fail” bank: a legal wall separating consumer banking from high-risk investment and trading activity. The Return to Prudent Banking Act of 2015 (H.R.381) and 21st Century Glass-Steagall Act (H.R. 3054) would bring back a version of the Glass-Steagall Act, which was repealed in the 1990s under President Bill Clinton.
● Enact a Wall Street speculation tax. It’s not right that consumers pay a sales tax on most things they buy, but traders don’t pay a sales tax on the stocks they buy. A tiny tax on the sale of Wall Street financial products – like the one envisioned in the Inclusive Prosperity Act of 2015 (H.R.1464) would raise billions of dollars for critical public needs, and could serve as a brake on high-speed computerized speculation that risks destabilizing markets. This tax would go farther than a narrowly targeted tax that Clinton has proposed.
● End predatory lending and offer alternatives for the “unbanked.” The coalition is throwing its support behind efforts by the Consumer Financial Protection Bureau to enact tough new regulations against payday and title lenders, which frequently entrap low-income borrowers in a quicksand of debt through sky-high, often three-digit interest rates and exorbitant fees. It also champions such “public option” alternatives as allowing the U.S. Postal Service to offer basic banking services.