Perlmutter Supports Help for Main Street

December 15, 2009

Calls on Congress to Support Securities Tax on Large Wall Street Trading Activity

Washington, DC – Today, U.S. Rep. Ed Perlmutter (CO-07) reiterated his support for recently passed financial reforms to bring accountability to Wall Street and end the risky banking practices and abuses resulting in the worst financial downturn since the Great Depression.

Additionally, Perlmutter urged Congress to support a small securities transaction tax (.25%) on large Wall Street trading activity. The revenue raised will be used to pay down the national debt and invested in small business job creation. This legislation could raise approximately $150 billion per year. To ensure the tax is appropriately targeted to speculators and won’t impact the average investor and retirement funds, the tax will exempt:

* tax favored retirement account;
* education savings accounts;
* health savings accounts;
* mutual funds;
* first $100,000 of transactions annually not already exempted.

“It’s time for the recovering Wall Street we bailed out to help rebuild Main Street America,” said Perlmutter. “Last year, Congress gave $700 billion to Wall Street because we had to in order to get credit moving again. Unfortunately, Main Street is still hurting, and small businesses and individuals need help now. This proposal generates new revenue to pay down our national debt so the impact of this current economic downturn doesn’t continue to hamstring future generations.”

Perlmutter, a member of the House Financial Services Committee, worked closely with his House colleagues to pass meaningful Wall Street reform and consumer protection legislation last week. Perlmutter passed amendments to allow federal regulators to prohibit financial holding companies from trading on their own accounts (proprietary trading) when there is serious financial threat to the stability of our economy and to ensure the U.S. gets paid back first if the federal government provides any monetary assistance to financial institutions on the verge of failing.

Perlmutter stated, “These changes are essential to rebuilding Main Street and getting credit flowing to small businesses, creating jobs and rebuilding our economy. The reforms will protect taxpayers and consumers by reining in the abuses and inefficiencies of Wall Street while enabling a balanced environment for the financial markets to grow and stabilize our economy.”