ANOTHER BILL INTRODUCED. 111th CONGRESS 1st Session H. R. 1068 To amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to the extent required to recoup the net cost of the Troubled Asset Relief Program. IN THE HOUSE OF REPRESENTATIVES February 13, 2009 Mr. DEFAZIO (for himself, Mr. WELCH, Ms. SUTTON, Mr. CAPUANO, Mr. WU, Mr. STARK, Ms. DELAURO, and Ms. EDWARDS of Maryland) introduced the following bill; which was referred to the Committee on Ways and Means http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1068.IH:
$250 X 200 trading daysis $50,000 + commissions. at just 2:1 gearing you would be broke before the middle of the year with a flat performance.
imo-they should start using this tax on firms,which asked for bailout money and see how it's goes..not from opposite side,like retail investor\trader,who was trying to manage his own savings using discount online broker..very simple and fair approach. tax for example GS,JP and so on MM's,dark pools,specialists on every transaction..
<i>The average Joe Blow daytrader era is about 15 years old. You gonna try tell yourself that before this time companies were unable to raise money? Come on.</i> I think a better comparison is pre-1966 when the US eliminated the transaction tax. We had no Nasdaq in those days. The Nasdaq came in 1972. Surely you would agree that we have more liquidity today than prior to 1966. Surely you would agree that it is easier for companies to raise capital today than it was 50 years ago when we had a transaction tax.
DeFazio is a complete MORON. And don't even bother contacting his office . . . it is filled with 24 year old Interns that have absolutely ZERO clue about Economics. Been there, done that.
Not really. The dollar became a full fiat and rampant inflation became a reality. Increased costs of living & materials made manufacturing an offshoring target. Add in growing personal taxes which forced wages higher and legal costs. The financial (and legal) industries grew because they directly leech off the ever growing money supply. They benefit from it. Manufacturing does not.
Its funny as hell cnbc nor any major online discounter from scwab to amtd has even mentioned any threat of this tax.If it were an imminent threat i promise you they would be going wild as they' re basically out of business if this passes. From what i understand this transaction tax has been introduced many times over the past 20 years and went nowere. no major high ranking honcho has really even discussed this. no way in hell this gets passed anytime soon
be serious. when it is imminent it is too late to stop it. this is all part of the new socialism in america. obama talked center in his presidential campaign. his record in congress was to the left. you left yourself an out by the nonsense of no time soon. if it is is six months you better brush up your resume.
Any company worthwhile had no problems raising capital. If there is a real need, there is a source. Nowdays most of these companies are just paper. Look, companies looking for capital seek liquidity from institutions, not daytraders who are buying and selling their stock every 3 seconds. If half the current daytraders would stop trading, there would be no difference in liquidity. If 95% of daytraders left the market, the black boxes run by Goldman, JPM and such would quickly pick up the needed work. Vilifying daytraders as the evil parasites is silly, but there is a little bit of truth to it. There is no added effect from another daytrader, the liquidity daytraders provide benefit only each other. It's redundant and somewhat detrimental when you consider the fact that this nation is running on moving money around. When financial services make up 30% of the economy, it is doomed. The irony is that using this reasoning for the transaction tax is just a selling pitch, as the true damaging speculators like Goldman, JPM, Morgan Stanly & gang will have their exemptions.