1/4% Tax on all stock trades pushed in NY Times today

i agree. i like the subtle comment about the us going out of its way to impose and force its own restrictions on other countries as well though (tax related, but also on other areas; patriot act for example)

 

the original draft of the European Commission FTT is nothing like the French FTT in every respect. There will be a 2nd draft in 2013, but I'd be extremely surprised if it would not apply to daytrading. One of the ideological reasons behind the existence of FTT-plans in the first place (apart from just wanting the cash ofcourse) is to tackle HFT.

 

That's the old 'Do as I say, not as I do'. It starts with your parents and teachers and follows you all the days of your life.

 

I added my Comment. We should write our representatives to sponsor Rep. Price's bill. Maybe, add that onto Tom Davis' draft letter to Congress. Silver lining in the French going too far in taxing U.S. ADRs is that Congress will hopefully fight back. This will embolden the UK and Sweden and other FTT opponents to fight extra-territorial reach.

Comment on above wsj article.

Kudos to Rep. Price for trying to block this French tax from landing in the U.S. It’s certainly the opposite of their Statue of Liberty. Eleven countries in the EU are doing enhanced cooperation on passing the same type of FTT tax to explode on U.S. exchanges. Is Europe trying to force American retirees and investors to pay for their financial meltdown in the EU? Contact your representative in Congress and tell them to sponsor Rep. Price’s bill.

 

My friend Theresa Carey's column in Barron's reports today that Schwab and TDA are shutting down in Europe due to new taxes and much lower trading volumes. More proof of destruction caused by FTT.

Online Brokers Cut Back European, Australian services - Barrons.com
http://online.barrons.com/article/SB50001424052748704526104578116891385426264.html

Here's my Comment on her article. Add your, too.

Financial-transaction taxes (FTT) and stricter regulations in the EU are causing great damage to traders, funds, banks, exchanges, retirees and investors. France passed their FTT and working with Germany, they encouraged nine other EU countries on an Enhanced Cooperation procedure to pass FTT in the EU.

U.S. brokers are wise to shut down in the EU as FTT puts traders out of business over night. France just expanded their FTT to French ADRs created and traded on U.S. exchanges, which means US traders will pay taxes to France. If all 11 EU countries do the same soon, it will materially affect US traders and hurt many.

Contact your Congressmen and tell them you don't want FTT in the U.S. - blocking bills from Rep. Ellison, Rep. DeFazio and Senator Harkin. And, to sponsor Rep. Price's bill to block the French FTT from extra-territorial reach in the U.S.

French Stock-Trading Tax to Hit American Investors - Washington Wire - WSJ
http://blogs.wsj.com/washwire/2012/11/30/french-stock-trading-tax-to-hit-american-investors

 

I'm going to write an updated letter for RallyCongress.com today using parts of Tom Davis' draft letter and my above comments too. I'll have it edited and post a draft on Elite to get suggestions. Time for another full court press with Congress, immediately next week. Don't consider FTT in fiscal cliff negotiations, it more of a tax on the middle class than the rich. That would break Obama's pledge.

 

Hey Robert,

Thanks for offering to post to RallyCongress.com

Feel free to use any parts of the letter. Also, consider adding this sentence: "Most empirical evidence shows that higher transactions costs are actually associated with more, rather than less, volatility."

 

Thanks Tom. I'll send you a draft when ready and let's work together to make sure it's good. We then need everyone to promote it in message rooms, in the media, with brokers and elsewhere. Full court press! I'll write a Forbes blog with it, too. Let's focus on the facts, showing The French and other FTT's do cause the destruction we claim.

 

--------------------------------------------------------

Below is information on Representative Price's proposed anti-FTT legislation.
--------------------------------------------------------

http://tomprice.house.gov/press-release/price-introduces-bill-opposing-financial-transaction-tax

Price Introduces Bill Opposing Financial Transaction Tax

Washington, D.C.– Congressman Tom Price, M.D. (R-GA) issued the following statement after introducing legislation opposing the establishment of a financial transaction tax on American financial markets. Price’s legislation prohibits the Secretary of the Treasury from assisting any foreign government with respect to the collection of a tax on securities transactions occurring on a United States financial exchange. Furthermore, it protects securities transactions in the United States from enforcement of any excise taxes imposed by the government of France. At the most recent G20 summit, European Union leaders pushed the idea of a financial transaction tax, and European Union countries have been moving toward instituting such a tax.

“Paying taxes to other countries is a bad idea – and we need a law to stop it! This financial transaction tax would harm small businesses and investors while damaging American entrepreneurs’ ability to compete in a competitive global environment,” said Congressman Price. “France and other European Union nations want to charge more taxes on financial transactions, ignoring the fact that small investors will be forced out of capital markets. This move would impede financial markets efficiency, decrease liquidity, distort and discriminate within markets, and raise costs all at a time when what our economy desperately needs is more private capital investment in growth and job creation. I urge my colleagues to act on behalf of American entrepreneurs, investors and job creators by joining this effort to preempt the imposition of any form of a financial transaction tax on American markets.”

 

Wonderful!

Those in a position to should write to your representatives specifically supporting this initiative.