NEVADA CITY, Calif. February 6, 2012 - Jim Reed, candidate for U.S. Representative in the new First Congressional District, greatly impressed two groups of Nevada County Democrats Saturday. With a masters degree in tax policy, Reed proved to be extremely knowledgeable in economic issues, as well as sympathetic to the 99% of citizens suffering the effects of current policy. He also knows his science, and stressed the importance of energy policy for our future.
First Reed addressed the Democratic Women's Club at their monthly breakfast meeting at Trolley Junction Restaurant. Later he was honored at a Meet and Greet at the Nevada City Veterans Building, where he also spoke and answered lots of questions from the audience.
"I'm a hard-core capitalist," Reed said, "but there is a difference between investing and gambling." He explained that investing is long-term, for eventual dividends, in both money and production. Gambling, on the other hand, produces nothing and involves lots of quick turn-arounds, and much of those are automated these days. Only one in two-hundred transactions are investments. Inside traders drive changes, and gamblers follow. Moreover, income generated by stocks and securities is taxed at the minimum rate of 15%, compared to the higher rates for people who actually work.
The solution is simple: First, a financial transaction tax of a fraction of a percent that would be felt primarily by high-volume, high-speed traders who deal in stocks, bonds, foreign currency bets, derivatives and other Wall Street financial products. According to National Nurses United, who recently demonstrated in Sacramento and across the nation, it would raise hundreds of billions of dollars annually to fund jobs, health care, and schools. Also, dividends and capital gains should be taxed at rates comparable to that of wages and salaries. Finally, individuals in a position to know of changes that will affect the stock market should be barred from owning the stock.
On the topic of Social Security, Reed pointed out that it has $2.6 trillion in its fund; it is not "bankrupt." Although based on actuarial of the '20s, the solution is not to raise the age or reduce benefits. Social Security is funded from FICA (Federal Insurance Contributions Act) payroll tax funds, which are capped at $110,000. Therefore, the rich get off easy. Simply eliminating that cap would fix it. The Ryan Plan to privatize Social Security would actually substitute gambling for financial security.
The "Occupy" movement is on the right track, Reed admitted, because the economic mess that is destroying the middle class was indeed caused by Wall Street. The top five hedge fund managers made billions in salaries. Derivatives are junk. Only inside traders win. To avert the destruction of the middle class, Reed offers three solutions: Eliminate the cap on FICA. Impose an excise tax on stock trades. Restore fairness to the income tax system.
On environmental issues, energy and water stand out. Reed, who also holds a degree in engineering, brought to the attention of the audience the fact that there has been a breakthrough in fusion technology at Lawrence Livermore Labs that promises a revolutionary safe and economical new energy source. Our research investments are needed in that direction, rather than being diverted to colonizing the moon. Reed drew spontaneous applause upon mentioning that we need our water to remain in the north, not to be shipped south by a new peripheral canal.
To contact congressional candidate Jim Reed or obtain more information, see www.JimReed2012.com.
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