This is a comprehensive study loaded with statistics on the aftermath of a small STT to fund just the city of New York. IBO New York City Independent Budget Office Background Paper November 2003 Reviving the New York Stock Transfer Tax http://www.ibo.nyc.ny.us/iboreports/stocktransfertax.pdf The tax would range from 0.625 cents to 2.5 cents per share, depending on share price. So at a share price of $20 and a tax of 2.5 cents per share: $0.025/$20=0.00125 or 0.125 percent rate which would be only half of the proposed tax of 0.25 percent. IF investors do not migrate to other exchanges: Trading volume would drop 18%. 60,000 jobs lost. (Those are just numbers, not people with families to feed) Revenue gain would only be $3 billion. $600 billion loss in equity value $300 billion loss in household wealth If trading activity drops by 1/3: 150,000 jobs would be lost and net city revenues would fall to ZERO. I thought a trans tax was supposed to rake in hundreds of billions?
Video of DeFazio pushing for the transaction tax, which he calls a transfer tax in this video-------- http://www.youtube.com/watch?v=qJO7hSbzc-4
This is precisely why Hillary Clinton, Chuck Schumer, Kirsten Gillibrand, and Mayor Bloomberg would be ALL over this. If you think that New York, Boston, and Chicago aren't the centers of POWER in this country . . . you are sadly mistaken.
I would very much like to see a representative from IB or any of the other brokers weigh in on this board as to what their firms are doing to prepare for and/or fight this tax. Many jobs in the industry in jeopardy if this bill passes.
Here is a little blurb from minyanville sounding a cautious tone regarding the transaction. http://www.minyanville.com/articles/index.php?a=21209 -Guru
How about each of us contact a broker & ask them about what they plan on doing about the tax threat? Reply with the name of the broker you contacted & their reply.