The AFL-CIO is pushing for a new tax on stock trades.  Although they sound altruistic, what the labor union is really looking for is more money with which to line their pockets.

A report from The Hill states that lawmakers are looking to pass a bill that would add a tax on every stock exchange.  While the tax would be small – about 1/10 of 1 percent – the revenues from large trading companies could raise between 50 and 100 billion dollars a year.  The new revenue would be earmarked – supposedly – for infrastructure.

The AFL-CIO is all over this idea.  They love it – for it gives a whole new way to fund projects in which they are heavily involved.  According to factcheck.org , while the federal government is not required to use organized labor, by presidential order agencies are to “consider requiring the use of project labor agreements in connection with large-scale construction projects in order to promote economy and efficiency in Federal procurement.”   A boon for labor unions – who need to use some employment leverage in order to increase sagging member numbers.  Although their numbers experienced a slight increase, unions still make up less than 15% of the American work force (Washington Post) . This funding and mandate is just what the unions need – a “join the union or join the unemployment line” push that has approval from the White House itself.

Investments from the private sector represent the best way to put people to work. Companies that sell stocks or bonds do so to increase capital to purchase equipment, conduct research, or to put people to work.  Putting a tax on the purchase and sale of stocks – no matter how small the tax – ultimately ends up in the further loss of jobs – union jobs or otherwise.

Infrastructure is important – and it is probably one of the very few areas in which the federal government should be involved.  Instead of putting in place a new tax, how about cutting costs somewhere else and putting that money into our roads.  While we are at it – how about cutting the AFL-CIO out of the mix entirely.  That alone will save millions of dollars in unneeded overhead.

The unions probably won’t like that idea – just follow the money.