4 letters to ed in wsj on the trans tax http://online.wsj.com/public/page/letters.html here is the first Will the Bill Discourage Speculating, Trading or Both? A recent opinion piece ("A Transaction Tax Would Hurt All Investors," by Burton G. Malkiel and George U. Sauter, Dec. 9) ignores the advice of John Bogle, founder of Vanguard, who has expressed longstanding support for a transfer tax on securities transactions as a way to slow the rampant speculation, and for its deficit reduction potential. A letter from 200 economists argues that this tax would have limited impact on trades that provide real economic value. Our legislation excludes tax-deferred pension accounts, the purchase of mutual funds, and the first $100,000 in transactions annually, protecting long-term investors and the majority of Americans. And a transaction tax is not untested. The U.S. had one until 1966 and it was doubled during the Great Depression. At the time, Wall Street claimed disaster, but the markets gained steadily. Great Britain currently levies a similar tax and the London exchange has the highest volume in Europe. After benefiting from TARP, it is time for Wall Street to pay its fair share for the benefit of the nation. Sen. Tom Harkin (D., Iowa) Rep. Peter DeFazio (D., Ore.)
The DOW is no longer a measure of domestic economic strength. Half of the DOW 30 is now reliant on foreign manufaturing. The current economy is just one prime proof.
It will hurt all investors (big or small) and give market makers a windfall. Small investors (non-traders) may assume that they are not taxed if they have less than $100,000 transaction per year. Even if they are not taxed directly, they will be paying a bigger spread when thye buy or sell stocks. When small traders are gone, market makers get a windfall when they pocket the bigger spread between bid and ask. In addition, the MM's will get exemption from this tax. If you have congressperson/senators who cares about little people (including democrates), please point this out to them. Please write to WSJ, NYTimes and whatever other paper that is worth writing to.
CNBC alert: Robert Weissman (Public Citizen) on CNBC now commenting on "fat cat bankers". Let's see if he brings up transaction tax talk. Also, news article from farmer heartland about the tax. Comments needed. (apologies if already posted) http://www.desmoinesregister.com/ar...EWS04/Bill-would-tax-stock-deals-over-100-000
Posted on Zero Hedge.... Let's just make it simple here.... Here is what the Transaction Tax WILL DO... The Big Banks will become the market makers once again.... thereby controlling the spreads in stocks.... The Big Banks will be exempt from any transaction tax.... Without market making....THERE IS NO MARKET.... The difference between the bid and ask which will widen dramatically.....just becomes another multi-billion guaranteed revenue stream for the Big Banks... Only the RETAIL segment would pay this tax.... The politicians that have proposed this tax have told the public that it would be a way to directly tax the banks....when in fact it guarantees a new profit windfall....and more control of securities prices....and simply dramatically increases the costs to RETAIL .... The Big Banks will never pay a dime with this type of tax.... .............................. A direct tax on Big Bank profitability is the only way to provide for an effective tax that the BIG Banks would actually pay.... Furthermore....Big Banks should be separated from the securities business via Glass Steagall... As far as correcting HFT or other harmful algos.... the solution is very simple....All orders must be made good for 1 sec minimum....
http://www.smallgovtimes.com/2009/12/the-secret-plan-to-pass-a-global-tax/ This guy from OXFAM is non stop. He has been on this issue for the year everywhere all over it. I wish we had the same way to get it out there on our end, as the opposition for the tax.
The article mentions this: President Obama âsupported [the idea] during his campaign,â Lawson says, but the U.S. Treasury Department under Timothy Geithner has been resisting it. Does anyone recall Obama supporting this idea during his campaign? -Guru
Obama has talked about a financial stability fee from the banks but never expanded on what that meant some take it as a fee on the banks and others especially in europe take it as support for the tax
Perlsmutter comments http://www.coloradoan.com/article/2...140316/1014/OPINION/Don+t+tax+our+investments