Fight Back Against Wealth Destruction

By Frank Holmes
CEO and Chief Investment Officer, US Global Investors

A bill taking shape in the U.S. House would hurt you by imposing a transaction tax on hard working middle-class Americans who buy and sell stocks, bonds and other financial instruments. The sponsors say this tax would raise $150 billion a year for federal debt reduction and job creation, both of which are certainly worthy goals. But this bill is a flawed tax-and-spend effort that amounts to an assault on middle-class savers and investors, who are the economic engine of the world’s strongest nation.

I understand why it’s important to help the disadvantaged, particularly during times of stress, but this legislation would cripple the nation’s important financial industry, destroy tens of thousands of high-tax-paying jobs (and in doing so drive up the deficit) and punish millions of investors trying to grow their wealth (on which they already pay taxes).

Look at Venezuela to see what happens when governments take over too much of the economy. Despite being one of the world’s largest oil and hydroelectric energy producers, Venezuelans have to deal with rampant blackouts due to the government’s inefficient operations and the government-dominated oil industry’s production has declined to mid-1990s levels. Now President Hugo Chavez, a socialist, is threatening to nationalize the nation’s banks, and he wonders why his countrymen are nervous.

I have no doubt that the congressmen drafting the bill believe they are helping the country, but its unintended consequences on savers, investors and the economy as a whole could be catastrophic. It’s important to send a powerful message opposing this bill in our role as guardians of good government. This is a chance to take control of your destiny – to express your concern about taxing money that is important for your retirement and for the formation of the capital needed to create jobs in America.

Several petitions are circulating in opposition to the bill, including this one that has already collected more than 60,000 signatures. You can also write to your representatives in Washington – whether you’re a Republican or a Democrat, it’s vital that you make your voice heard on this important issue that would hurt all investors and the country as a whole.

Contact Your Government Contact President Obama You can also call or write to the President: The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 *Please include your e-mail address Phone Numbers Comments: 202-456-1111 Switchboard: 202-456-1414 FAX: 202-456-2461 Find Your Senator Senate Leadership Find Your Representative House Leadership