As if the capital gain taxes are not enough. Or is it transaction tax as a substitute of the capital gain taxes?
Well I have yet to hear Summers (against tax), Geithner, Dodd, Frank, or even Pelosi come out in support of this tax. I think they know this would be political (and financial) suicide so therefore this isn't going to happen. Geithner was just talking up how they want private monies to play a big role in the bailout - so they're going to turn around and crush private investment with this punitive and dangerous tax? I don't think so. This thing will kill liquidity so it won't raise the revenue the so called experts say it will. Or in order to maintain liquidity you would have to exempt all the big players (again no revenue raised) and just tax the mom and pop investors? Ain't gonna fly. -Guru
They just showed the Washington politician scumbags talking about this on fox business news channel. Didn't seem like anyone really objected much...... pretty disgusting.
I'm sure that a lot of this has been covered, but it could never happen. Pete and rePete (Stark and the guy from Oregon, so left they 'goose step' into Capital) were politely dismissed when they initially brought it up in September. Imagine a $60 stock where u had to pay .15 cent tax on way in and .15 on the way out. We would have to go back to 1/4 point spreads. Whats the use of going to decimals, then like 5 years later instituting a 50 basis point round trip tax. It would kill the already decimated economies and state/city govt's of NY and Chicago (Obama from Chicago, IL) for certain. This because of the dramatically reduced taxable revenues produced by the banks/exchanges/brokers among others. These types of increases don't work. Clintons higher Cap Gains tax produced less income than the lower tax. No one that I have ever talked to or dealt with pays stamp tax in the UK (50 bp on sells) for the last 15 years at least. It's built into your account that every transaction on the LSE is a CFD (Contract for Differences). The brokers/banks are exempt from stamp, they buy it and you enter into an agreement to settle the 'difference' when you sell it. It is not a matter of 'if' it is being abolished in the UK, it is a matter of when. You see, there are some stupid people that do in fact still pay stamp in the UK to the tune of 3Bil GBP/ year.
I was watching that but I didn't catch the congressmans name (or where he as from) - anyone know who that was? Basically he was asking a panel of 8 bankers what they thought about a transaction fee on every share of stock traded. The only one who really questioned it was John Mack of MSCO - he mentioned about the exchanges getting hurt, volume being hurt and a global marketplace, etc. The others bankers pretty much said that hadn't heard of it but it might be worth discussing. At that point Barney Frank chimed in about the Tanner proposal from the first TARP calling for repayment of taxpayer money (if they lose money) after a period of 5 years. But the only thing I saw mentioned in that tanner proposal is a 2% fee on taxable income of financial services (not a transaction tax). But then Frank said something about getting a tax phased in now rather than later - not sure if he was referring to the 2% tax on income of firms or a transaction tax (maybe he didn't know, lol)... Anyone else see this? -Guru
Stamp tax was the reason behind the Boston Tea Party. If this does fly we might have to rebel and form our own government. Maybe take over a state or better yet an island in the tropics. Maybe NYC, it would resemble the NYC in 'Escape From New York' though probably. We would need a modern day 'Sam Adams' who became famous for instigating the crowd on the docks in Boston into a riot and convinced them to throw all the tea into the harbor. Modern day 'Sam Adams' candidates: Cramer - At least he's loud Stevie Cohen - Carries a big stick Dan Loeb - Could write a great Declaration of Independence Andrew Cuomo - I bet he'd switch sides on this one, loves a good fight Spitzer - Why not, she was hot! - Any other candidates?
Capital gains revenues increased 0.7% of GDP from 1994 through 2000 under Clinton. http://www.capitalgainsandgames.com...-clinton-and-fell-under-bush-reasons-had-litt
I think you guys are a little confused about this proposed transaction tax. The tax has nothing to do with raising revenue. It's about putting day traders out of business. There will be no riots in New York City because the public supports this tax. How do you gain public support? Pretty easy, through fear. The media and the government has the public convinced their IRA's/401(k)'s have been raided by day traders and if a measly .5% tax is all it takes to get rid of day traders then so be it. "Sign me up," says Joe Investor. The Revolutionary War was fought partly because of the Stamp Tax. The primary reason for the war was the Bank of England prohibiting the colonies from creating their own money. The colonies were prosperous on their own. Once England stepped in poverty appeared. The Transaction Tax will not create poverty and will not result in any kind of riot. The masses will welcome it with open arms. They will pay anything to get rid of those damn day traders.
Wrong Walter. Dismal effect from raising the Capital Gains tax by Clinton. All of the growth that came from the period of Clintons presidency came AFTER he gave in and lowered the Cap Gains rate back to 20% from 28% in 1997. Nice 'spinster' try. Link: Don't buy the liberals' claims about the Clinton tax hikes being harmless
Yeah speculators and 'day traders' caused all these problems (LOL). Well implement this tax and watch liquidity and the market go bye bye -Guru