Call to Arms - We Must Fight the 0.25% Stock Transaction Tax

It is 25% of the underlying asset so if the ES is trading at 800, 1 contract bought or sold would amount to $200.00.

 

most people who save in there 401k's at work already pay a load to there mutual fund plus they pay advertising fees and they pay management fees which far exceed the small tax the govt is asking for.
its not the end of the world.
one would think this might take care of a lot of the excess capital sloshing around the world which distort the markets and cost us all far in excess of this tax.

 

You got it mang!

For every 10 ES points, add or subtract 1.25USD ( .03125, 1/32, cents per tick)

 

Hmmm, thanks. Not that I necessarily doubt you, but do you have a link? Not sure where your 25% (as opposed to 0.25% of 'x', whatever 'x' is) comes from.

 

Thanks.

 

What justification for no tax are you guys giving in your submissions? Unless it significantly hurts pensions and 401k's I don't see us 'greedy speculators' having a leg to stand on, in most people's minds.

 

I got this number from the other thread started last week on the tax, if it is wrong (which I hope it is, although I do not believe this would ever pass) I would like to know what the tax would amount to per ES contract.

Thanks
Chris

 

The major indices would have an enormous loss of both liquidity and value, if it went up for a vote the Dow would probably lose 10% in a day. Businesses would move to other countries.

Liberals talk of creating jobs, this would lead to an enormous number of jobs leaving the country.

 

Makes sense. Cap gains would plummet too, possibly offsetting any increase in tax revenue.

 

A wise man once told me, when you want to persuade someone, look at talking to their self-interest. So I wrote this:

However put all of the above aside. The aim of this legislation is to make Wall Street pay for their sins right? Let’s look at the impact to a typical middle-class American family that saves and invests for their retirement and their kids’ college tuition. 0.25% doesn’t seem like a lot right?

With each round-trip costing around 0.50% (2Xs 0.25%), just a few trades could deduct 1.5% from a family’s assets each year. The insidious nature of a percentage-based tax is that every 1.5% taken away is 1.5% of money that will never grow and compound in the future. Over 40 years assuming a rate of 8% annual return, this tax will cause the middle-class family to have 45% less money for their retirement. You can adjust the numbers down or up even to no annual return or 1% deduction, but the no matter what you plug-in this tax will penalize middle-class investors with a huge chunk of their savings over time.