FORUMS BROKERS SOFTWARE
Home
 
    Forums > Trading for a Living > Taxes and Accounting > 1/4% Tax on all stock trades pushed in NY Times today

Old Jan 13th, 2009, 09:26 AM   #13
DmanX
 
 
Join Date: Dec 2008
Posts: 163
I wonder how they would calculate the value of a futures or other derivatives trade since one is not buying or selling anything with intrinsic value?

They are better off just imposing a fee like the exchanges already do instead of a percentage tax.
    Quote
Old Jan 13th, 2009, 09:29 AM   #14
KrispyKreme50
 
 
Join Date: Jan 2008
Posts: 312
It's interesting how most of the comments on that article's page show a profound ignorance of how the markets work. It seems like most of them are supporting it because it "sounds good."
    Quote
Old Jan 13th, 2009, 09:35 AM   #15
Wayne Gibbous
 
 
Join Date: Jul 2006
Posts: 2,740
Quote:
Quote from DmanX:

I wonder how they would calculate the value of a futures or other derivatives trade since one is not buying or selling anything with intrinsic value?

They are better off just imposing a fee like the exchanges already do instead of a percentage tax.
I was thinking about that too.

It would suck but I could handle a 0.50 per trade tax or something like that. But a percentage based tax would kill all the profit for day and swing traders. Without a doubt.
    Quote
Old Jan 13th, 2009, 09:36 AM   #16
trillenium
 
 
Join Date: Aug 2003
Location: Singapore
Posts: 195
I think they will excempt the big banks from paying it - that way they finally have a new business model that works.

0.25 % is way too high but if many industrialized countries agree on it then it will be applied everywhere. And the public will applaude.

I guess the spreads will widen but Banks will win and Governments will have another big revenue source.

For me it would be the end unless i qualify also for an "excempt status" . But i guess thats evolution and you have to find another niche.

I bet this Tobin tax will come soon ... good luck to all of you then.
    Quote
Old Jan 13th, 2009, 09:37 AM   #17
Diamond Geezer
 
 
Join Date: Apr 2002
Location: New York City
Posts: 299
jd7419 is right. In the UK they have this but let's be clear, you don't get exempt by being "a trader in securities" defined as trading a lot. You have to be a regulated entity. Very big barriers to entry.

Ever noticed that there are hardly any independent full time traders over there and those that do exist are trading European futures, currencies or US stocks through a US broker.

Notice how "spread betting" is big for the retail chump in the UK? They were invented to get around this tax and get the little guy in the game. These "CFDs" are really perpetual single stock futures that give the little guy leverage but with bid-ask spreads the size of the grand canyon. They are gambling products.

It all depends on how they do this. My guess is they'll follow the UK example which will put the independent traders out of business but not the regulated institutions and that will include the newly regulated hedge fund industry. It's pretty depressing.
    Quote
Old Jan 13th, 2009, 09:39 AM   #18
wave
 
 
Join Date: Mar 2005
Posts: 2,632
You can forget about the US of A being a market-based economy if this happens. We've obliterated every other form of advantage we had, why not the last standing Wall Street? sheesh, where's my passport...
    Quote
 
Reply
Thread Tools

Forum Jump



   Conduct Rules   Privacy Policy   Sitemap Copyright © 2014, Elite Trader. All rights reserved.   

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures
Futures Trading & Clearing
AMP Global Clearing
Futures and FX Trading
Collective2
Automated Trading Services
CTS
Futures Trading Software
dom993trading.com
NinjaTrader Consulting
eSignal
Trading Software Provider
FXCM
Forex Trading Services
Global Futures
Futures, Options & FX Trading
Interactive Brokers
Pro Gateway to World Markets
JC Trading Group
Direct Access Trading
MB Trading
Direct Access Trading
NinjaTrader
Trading Software Provider
optionshouse
Option Trading & Education
Rithmic
Futures Trade Execution Platform
SpeedTrader
Direct Access Trading
SpreadProfessor
Spread Trading Instruction
thenut-trader.com
FX, Gold, & Stock Signals
TradersStudio
System Building & Backtesting
Tradier
Equity and Options Trading
Trading Technologies
Trading Software Provider