This probably won't pass, although there is a risk. The exchanges, Wall Street, and Chicago/NYC will be strongly against it, as the finance industry will be dealt a death blow on top of the cascade of bad news it has already suffered. Even if the law passes, then there are other countries which don't have transactions taxes, so you will still be able to earn a living, albeit a less good one because the liquidity and information will be lower. However, it would be a foolish trader who does not work extremely hard for the next year or two, building up their capital from daytrading profits, and working on their position-trading or investing skills. If this tax does come in, short-term trading in the USA will be finished for decades. Once a law is on the books, it takes a long time to get it off, even if it's dumb. Legislative inertia is very real. For that reason, I'd recommend all US-based traders to agitate, contact representatives, and if you have the money, it could even be a profitable use of capital to hire lobbyists. How does it feel to live in a quasi-socialist country? "When I picked up my newspaper yesterday, I thought I woke up in France" - Senator Jim "Nostradamus" Bunning N.B. the UK tax is only on shares, not on futures or derivatives.
====================== Good questions, Robert. Well the NYT may not like this, but many newspapers are losing market share for shallow thinking /writing like that. Investors Business Daily is a welcome change.Like that change.LOL Actually I am not predicting USA president Barack is going to raise taxes , he may or may not. Usually dont watch CNBC, prefer bloomberrg.com, but during the presidental race, Maria B of CNBC interviewed him. Maria B of CNBC raised her voice at him ''you are going to increase taxes in a recession?????? she asked incredously.Mr Barack backed down & mumbled somthing about Ronald Reagan, who lowered taxes[flat tax.....]
Is it really that hard to understand that Wall Street & even the exchanges would be behind this? I mean really, does your brain short circuit when it is explained to you? Or is it really that hard to accept that the daytraders are not vital to the economy or the markets whatsoever, while being loathed by Wall Street? Big wall Street B/Ds and Market Makers will have exemptions. If you want to daytrade, you will be forced to go to them and pay higher fees & commissions. Oh, and your order flow will be watched & traded against. Simple as that. Same old trick they have been using for decades.
Best description of the situation. If all those fuckers which are not even able to selection people who are able to pay back their loans, use THEIR crisis to get their edge back on the financial markets...Seriously I join al qaeda, and then eurex or liffe.
Actually, you are correct. Some intermediaries may be exempt. However, historically when this tax existed in the US for nearly 70 years, specialists and almost all firms were not exempt. I hear there's a cutting edge paper coming out on this topic that will once and for all end the debate on the effects of the tax. Can't wait to see what it says.
Everyone has read it except you apparently. The only way for you to make money is to eliminate the competition? What do you do all day? You've had a hard life, I'm sure.