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ivanbaj
Registered: Jul 2007
Posts: 1112 |
01-13-09 08:05 PM
Why did the idiot propose only 1/4% Tax ? Why not 10%?
He must feel that a big tax might be a problem but how did he figure that 1/4% Tax is OK?
If you are successful trader you better hide your money from the masses. One day they will come for you. The Gods have decided that Paranoia is what we deserve. It surrounds a treader from everywhere.
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Landis82
Registered: Jul 2006
Posts: 8580 |
01-13-09 08:05 PM
Quote from wjk:
The politicians will not be concerned with traders who are actually ethical and about business. They will seek to punish all because that's what the uneducated masses want.
Such legislation doesn't just tax TRADERS, but also INVESTORS . . . . with the twisted DeFazio "logic" of having to create some way to raise revenues in order to pay for the $700 billion dollar "Wall Street" bail-out.
As a result, the "Little Guy" gets screwed as well ( unless they impose some sort of a back-ended tax based on your holding period ).
I still don't think any kind of tax like this will fly. Moreover, half of that $700 billion is going to wind-up being spent in a much different manner than the "top-down" direct investment approach that Paulson used.
Larry Summers ( and others ) are bright enough to know that a transaction tax will distort the market. Even Dean Baker ( the economist that the NY Times writer Bob Herbert cites ) knows full well that Summers has yet to advocate any policies that would cause serious pain to Wall Street.
http://www.prospect.org/csnc/blogs/...s_fearless_trut
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Anaconda
Registered: Dec 2008
Posts: 1931 |
01-13-09 08:09 PM
Quote from Clubber Lang:
Then all the big "prop" shops will become BD's and all their trades will be exempt too.
There are ways to circumvent almost any rule.
That's what they did in UK.
But in effect, it means MORE regulation for the prop shops and more costs. Few of the prop shops will be able to make the change.
You also assume that the regulatory agency will be lenient in approving new B/Ds which will qualify for the exemption.
It will be just like with the naked shorting rules, the market makers can do what they want, the rest can't.
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shorty_mcshort
Registered: Apr 2003
Posts: 202 |
01-13-09 08:10 PM
Oh $hit!
"More recently, following the U.S. stock market crash of 1987, the idea of using transactions taxes to curb speculation received support from Joseph Stiglitz (1989), the former chairman of the U.S. Council of Economic Advisers and former chief economist of the World Bank. It also received support from Lawrence Summers (Summers and Summers 1989), the recent U.S. Treasury secretary. The bottom line is that the Tobin tax has a highly respectable intellectual heritage. Though this background does not make the Tobin tax necessarily right, it does dispel the notion that it is an outlandish idea."
http://findarticles.com/p/articles/..._44/ai_75532962
It seems every time there is a crash or a steep decline this idea will pop up!
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wjk
Registered: Nov 2007
Posts: 1649 |
01-13-09 08:17 PM
Quote from Landis82:
I still don't think any kind of tax like this will fly. Moreover, half of that $700 billion is going to wind-up being spent in a much different manner than the "top-down" direct investment approach that Paulson used.
Larry Summers ( and others ) are bright enough to know that a transaction tax will distort the market. Even Dean Baker ( the economist that the NY Times writer Bob Herbert cites ) knows full well that Summers has yet to advocate any policies that would cause serious pain to Wall Street.
I hope you are correct Landis. I remember when it was brought up just prior to the bailout vote. Pelosi did not want to consider it because she feared she would lose the needed republican support, but she did leave the door open, and as you know, there are now less republicans to stand up against it...not that they would anyway.
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FightTheFuture
Registered: Jun 2006
Posts: 1709 |
01-13-09 08:23 PM
Quote from shorty_mcshort:
Oh $hit!
"More recently, following the U.S. stock market crash of 1987, the idea of using transactions taxes to curb speculation received support from Joseph Stiglitz (1989), the former chairman of the U.S. Council of Economic Advisers and former chief economist of the World Bank. It also received support from Lawrence Summers (Summers and Summers 1989), the recent U.S. Treasury secretary. The bottom line is that the Tobin tax has a highly respectable intellectual heritage. Though this background does not make the Tobin tax necessarily right, it does dispel the notion that it is an outlandish idea."
http://findarticles.com/p/articles/..._44/ai_75532962
It seems every time there is a crash or a steep decline this idea will pop up!
Yet they won't tell you that the 0.2 percent US stock transaction tax did not stop the 1929 crash.
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