Trumka and the AFL-CIO propose a novel way to create jobs: tax Wall Street financial transactions and use the revenue to fund “infrastructure” jobs, such as road-paving. These jobs tend to be unionized. In addition, the AFL-CIO plan suggests jobs meet “minimum labor standards,” another way to say “likely to be union” jobs.
Although some financial mavens have agreed that implementing certain transaction taxes may mitigate rampant speculation in the markets, neither the government nor the U.S. Chamber of Commerce agree that taxes are the answer to speculation issues or to job creation.
The AFL-CIO intends to unleash a grass-roots campaign for the jobs program, called “Jobs Now Make Wall Street Pay,” in mid-March. Trumka is hoping to capitalize on voter anger over the government bank bailout scheme.
Although Trumka says his plan would raise $100 billion dollars per year in revenue, Martin Regalia, chief economist for the chamber, said such a plan was flawed and the tax would simply send transactions to other countries that didn’t have such a tax. “The way to create jobs is not to increase taxes and certainly not to increase taxes on financial transactions,” he said.
