It looks like Summers isn't for it after all. Look at my earlier post today that said back in 1989 Laurence Summers was for the tax but now he has reversed his position. I wonât pretend that the tax idea is much in vogue today. When I asked Summers about transaction taxes, he replied that he has rethought his position from two decades earlier: âI have become convinced that in the world of today, because of globalization, derivatives, and other institutional changes, it is probably not realistic to collect significant revenue from turnover taxes. I also have become more convinced than I was years ago of the importance of maintaining liquidity.â http://www.portfolio.com/views/columns/wall-street/2008/09/18/Advocating-Tax-on-Stock-Trading#page3
Thanks for the quote. I honestly believe sane minds with similar thoughts will prevail in this country and there won't be any tax levied like this. There are so many people that would like a tax that don't understand the markets and what they mean to the economy, but fortunately there are enough highly respected ones that do who won't let it happen.
author estimates $100 billion in tax revenue. is that assuming the same amount of trading will be done? if so, that $100 billion isn't happening. not only that, but think of all the taxes the gov't collects from traders, market makers, hedge fund managers etc...making billions upon billions of dollars actively trading and making markets every year - that will be seriously reduced if active trading is eliminated. probably becomes a wash in the end, hardly a good idea at the peril of efficient markets.
How about trading in an IRA? A Roth IRA, perhaps? Even a regular IRA? I assume IRAs would be exempt. Imagine the outrage if they weren't. Someone takes taxed money out of their bank account to do a Roth IRA, and then get taxed for actually trying to increase it so they don't have to rely on Social Security. An idea: trade the IRAs of others, and live off of the fees.
I for one am in favor of this tax. I am actually really surprised that so many on ET are against this tax. The wonderful thing about this tax is it appears so small and so removed from what the public would consider a large tax that it may have a chance. I have a democrat rep and two senators and I may just send them a letter telling them how I support this measure. If this tax started to get some traction like I hope it does I would take every last dime I have and short the major indexes for all I could. Think about all the money that could be made from riding that trend down 30-50% of current value. Then after they repeal it due to the crash that really sends the markets down we will probably get a 10-20% move up. This would be the last two trades I would ever have to make as I would be in style and "living happily ever after" Think about it for a moment, this could make the trade off of the battle of waterloo childs play
If this tax is implemented, all of you Obama lover's have only yourselves to blame. Over the next few years, he and the rest of the Demo"craps" in Congress are going to tax everyone to death. Obama, and the rest of his brainwashed followers also want to see him outlaw the right to carry a concealed weapon, and even restrict the right to free speech by passing the Fairness Doctrine, which is a typical liberal, tree hugging, douche bag way of whining when they don't agree with the opinions of others. I'll actually laugh my ass of if this tax goes into effect. Everyone will just have to pay it, and will. But again, you only have yourselves to blame for putting a socialist, quota hire in the white house. One who couldn't pass an F.B.I. or C.I.A. background investigation due to his shady associations with people like domestic terrorist Bill Ayers. In 1997, Obama endorsed a book written by this terrorist, who was responsible for bombing the U.S. Capitol, Pentagon, and New York City Police Headquarters in the 1970's. In the Ayers Book, "A Kind and Just Parent: The Children of Juvenile Court", Obama's picture is on the back cover smiling, and praising Ayers. You get what you ask for!!!
http://seekingalpha.com/article/97964-why-not-a-transaction-tax Still believes it is way too high and will destroy the financial industry, including us "An important potential drawback if the US were to impose a more substantial transactions tax alone, is that it might drive financial business offshore. There is an answer to this point. As noted, lot of countries already have such transactions taxes. Furthermore, lots would love to cooperate with the United States in an international program to harmonize such taxes internationally. This is precisely the sort of thing that many abroad have always asked Americans to participate in, but that we have not hitherto wanted to do."
hey people on this forum, i tried my best to see if anyone else posted in this thread to see if any other person would have noticed this but there are too many posts..apologies for repeating but: THE ARTICLE SAYS: "his would impose a small fee â ranging up to, say, 0.25 percent â on the sale or transfer of stocks, bonds and other financial assets, including the seemingly endless variety of exotic financial instruments that have been in the news so much lately" THIS MEANS A 25 BASIS POINT FEE ON THE SALE OR THE TRANSFER OF OWNSERHIP WHICH MEANS THAT IT IS AFTER THE POSITION IS CLOSED This is the equivalent to .125% a side...OR .25% ROUND TURN therefore, you just have to pay an additional 25 BASIS POINTS but the article does not specify if the percentage is based on capital gains or notioanl value... i just see so many people on this forum making assumptions. Can someone please provide substantial info on whether it is based on notional value, capital gains, or it is round turn or per side!!!!!!!!!!!!!!
what difference does it make. it is at the talking stage. the goal is to block any transaction tax before it get off the ground.