Here's the BBC explaining the effect of the "aftershock" collapse caused by no banking bonuses and trader taxes etc. http://www.youtube.com/watch?v=H9P3x9YINTg
Crap like this makes people hate traders and look at them as a bunch of greedy degenerates. http://www.nytimes.com/2009/09/04/business/global/04optiver.html
Paradoxically, if this tax went into effect, virtually no one would pay it because the retail trader would go extinct.
+1. Or the government believes it can turn itself into casino house and make nice profits off some dummy compulsive gamblers.
if this goes through, the gamblers will be out after a month or two, instead of being done in 6-12 months these days. the boutique shops which have picked up the slack in employing the wall street unemployed, are going to be squeezed to death as well. do these morons not realize that even under the current system the poor are much better off in the US than the rich in many other countries. If you start redistributing we will be answering to Brazil in 20 yrs.
exactly. greedy tax and spend politicians are assuming behavior would be the same and dollar signs light up in their eyes, of course however if this tax passes it would only suppress most active trading activity, so they get hardly any money, and we don't get to trade, a lose-lose for everyone. plus it inhibits average people from investing in companies since the tax to try investing in them would be so high, if they got in and out more than a few times a year... and everyone knows now that "buy and hold" doesn't work, it's important to use stops, in mutual funds etc which impacts liquidity. ok I've gotta go back to day trading now, mgm on this breakout and lvs and kog and jazz and..... -k
This is interesting, Ethical Currency Broker? Is that an Oxymoron This was from cnbc world, a broker that automatically adopts the currencey "Tobin Tax" which generally is said to be at .005% which is about 5 bucks per hundred thousand dollars. Now I trade currencies, and f something like a transaction tax passes, this much I can live with and it would raise money and not put anyone out of work! The one they are mentioning now is ridiculous for .25% Seems the currency tax, is most wanted by the NGO'S and from most of the papers I have read it is .005% The number the communists like DeFazio and Baker are putting out are utterly ridiculous. I love how the afl -cio says non productive we dont add to society, how about we take care for our families purchase food , vehicles, homes doesnt that add to the economy. We dont all have to work in a factory, I dont think they realize that.
Not sure what % of the equity market is retail traders (aka, day traders), but it has to be fairly significant. Taxation of the US equity markets would cause these traders to flee to other markets such as FX. I really haven't closely followed the details of this proposal (since I don't believe it will happen), but if FX, brokered by US firms, fell into this taxation bucket, then traders would find overseas brokers, to avoid this tax. Net-net, would be a significant loss of liquidity from US traders, a more volatile US stock market due to decreased liquidity, and little additional tax revenue. Then again, those who can't do serve, and those who can't serve well, serve as policiticians. I'm sure this plan isn't well understood by most of Congress, and politically, as an earlier poster stated, may be favored by the masses. So, who knows, maybe this gets passed, especially if there is some sort of 401K carve-out in the final version.