America’s first Muslim Congressman and Co-chair of the Congressional Progressive Caucus Keith Ellison, has proposed a new financial transaction tax .The “Inclusive Prosperity Act” (HR 6411) seeks to tax all Wall Street financial transactions to provide “the revenue needed to invest in the education, health and communities of the American people.”
Minnesota Congressman Ellison (D.) serves on the House Financial Services Committee which has jurisdiction over the banking system, stock exchanges and the housing and insurance industries. Before running for the federal legislature Mr. Ellison was a noted Minneapolis community activist practicing civil rights and employment law and Minnesota State Representative. Sound familiar?
Touted as the “Robin Hood Tax” HR 6411 (described at www.ellison.house.gov) imposes a tax of “0.5 percent on stocks, 0.1 percent on bonds and 0.005 percent on derivatives or other investments” and it is expected to raise billions of dollars by taxing “highly speculative financial transactions.” Speculation or “Maisir”, a form of “Riba” is prohibited by the Quran along with commodity exchanges and an earned increase in capital without services provided (capital gains). “Riba” according to the Mohammed, is a sin akin to “a man committing adultery with his mother” and requires financial penalties.
You see Congressman Ellison’s bill is not really a tax, but a penalty (much like the Obama care tax is not a tax, but a penalty). Muslim’s don’t believe in the merits of American capitalist finance and its ill-gotten gains. To them charging or earning interest is a sin and any profits must be purged through a penalty that is donated to charity. A closer look at the Inclusive Prosperity Act (HR 6411) reveals the true nature of the proposed law.
Revenue generated from this proposed law would “expand opportunity for low and moderate income families, including strengthening the social safety net and expanding resources for child care, Social Security” and “Medicaid and Medicare” while “investing in education, student debt relief, job training and housing assistance to low income households.” For me the most telling provision of the bill describes its role in “funding international sustainable prosperity programs such as health care investment, AIDS treatment, research and prevention programs and international assistance.” All of this sounds remarkably similar to government charity packaged as entitlement expansion but how do international prosperity programs help American Communities?
If this bill becomes law, all financial transactions will be charged a tax (or penalty) which will be washed through a myriad of government giveaway programs so as to adhere to Islamic Finance Law. Congressman Ellison, our first U.S. Muslim representative is attempting to pass a law that will in effect make our entire financial services community covertly Sharia compliant.
As it is with all proposed legislation many of the details of HR 6411 are omitted, camouflaged by legal jargon or lack any level of specificity. However, Ellison’s bill begs the question: If we already have a capital gains tax why do we need another financial transaction tax? Well……….because the tax is to be paid by businesses facilitating these financial transactions in the United States and citizens of the United States only. Special exemptions apply to financial transactions and banking institutions that already adhere to the bills guidelines. In other words, Sharia compliant banks and financial institutions don’t have to pay the tax (or penalty).
This bill was introduced in September 2012 and is already in committee. If President Obama is re-elected I can almost promise you it will find its way to becoming law. The next time someone you now shrugs off Islamic influences as conspiracy theory show them HR 6411. Let them know Mohamed is whispering in Congressman Ellison’s ear and he wants your money.