Header Image Mobile Header Image

Blog

06/10/2016 | Holding Wall Street Accountable

Taking on Wall Street

As a key area of our work, the Center for Popular Democracy (CPD) and its partners want to ensure that the voices of working people and consumers are heard above the power and influence of Wall Street. In addition to our investment in our successful Fed Up campaign, CPD is a part of Take On Wall Street, a broad and diverse coalition united to advance concrete policies that make a dramatic difference in leveling the economic playing field and improving the lives of ordinary families.

The coalition, which includes groups from labor, policy, and community groups, has prioritized five policy goals that would reshape the financial system and ensure that decision-making structures promote shared prosperity and racial equity, rather than ever-increasing inequality.

The first of these goals is simple: We want Wall Street to pay their fair share of taxes. By putting into place a Wall Street Speculation Tax—a fraction of a percent on sales of derivatives, stocks, bonds and other Wall Street financial products—we can raise many billions of dollars in revenue for these and other needs with a tax on Wall Street traders.

Additionally, Take on Wall Street wants to end tax evasion by Wall Street money managers by closing the private-equity and hedge-fund-manager loophole. The top 25 hedge-fund managers received $12 billion in 2015—more than the combined income of every kindergarten teacher in the country. Yet these wealthy financiers take advantage of a special loophole to pay a far lower tax rate than millions of working Americans.

We would reinstitute a modern day Glass-Steagall act—the separation between commercial and investment banking: making banks smaller, governing structures simpler, and our economy more stable for the communities most affected by income inequality.

The coalition also intends to stop making the public pay for ballooning executive compensation. Under current law, the more corporations pay their executives, the less they pay in federal taxes—a result of a loophole that allows corporations to deduct unlimited amounts of “performance-based” bonuses to CEOs from their taxable income. This amounts to a taxpayer-funded corporate subsidy of over $5 billion per year at a time when CEOs are already paid more than 300 times the average worker.

Finally, the Take on Wall Street Coalition identifies the crucial need to expand access to fair and equitable consumer banking services and end predatory lending. Approximately 68 million Americans are ‘unbanked’ and rely primarily on fringe financial institutions—often on predatory terms. Fees from services like payday lenders and check-cashiers cost these families an astonishing $89 billion a year—over $2,400 per family. These predatory services are concentrated in low-income neighborhoods and in communities of color, stripping additional wealth from those who can least afford it.

We need stronger consumer protections and we need broad access to high quality, low-cost banking options designed to serve customers fairly. The U.S. Post Office is well placed to provide such basic banking services. For many decades the U.S Post Office provided savings accounts and check cashing services, and postal systems provide these and other services in countries around the world today.

While working to advance these policies in Washington, the Take On Wall Street campaign will also fight for change in state houses and city halls—and in the streets. We will push decision-makers not only on specific laws and regulations, but on the critical question of who is at the table when decisions are made.

By taking on Wall Street, the coalition is taking on the shared concerns of all Americans in the years after the damaging recession. But the coalition particularly addresses the disproportionate impact on our communities—people of color, immigrants, and other working people across the nation—delivering an agenda that promotes the protections and fair share of power we’re due.