Better to just renounce and find a country not buyin in. If the US wants to give up liquidity, we should move to where it will go. The government wants to control everything so bad. Money will flow to where it can be free. I see your point in moving to penny stocks, but getting in and out will be quite the challenge with few traders in it.
The TT will not come to life unless it's a worldwide tax. The US cannot afford to risk a massive exodus of capital.
Don't worry, day traders. Stupid behaviors will be punished, always. American auto companies deceived customers by selling poor-quality cars for the last few decades and were punished with bankruptcy. AT&T deceived customers by all kinds of frauds in the last few decades and was punished with bankruptcy (Cingular merely adopted the name AT&T recently). American textile companies deceived customes and were punished with total demise. K-mart deceived customers and was punished with bankruptcy (Long live Walmart, Always Low Price). American banks deceived customers and were punished with bankruptcy. Now American government tries to deceive traders with so called "trader tax," and the result will be obvious: Traders will move to markets of other countries (thanks to Internet, which is a border-less global medium). As any market participant knows, stock price rises as a result of more buying and drops as a result of less buying. The trader tax will significantly restrict the number of market participants and cause stock price to drop (how much I don't know, but the potential damage is beyond estimate), and all those who invested their money in the market will lose a significant percentage of their capital. The government may collect some billions of tax dollars, but the market will shrink by trillions of dollars. This is the ultimate punishment for these idiots! As a trader, I am prepared to trade the European market or the Asian market. Forget American market. YM my ass! As a driver, I am prepared to buy a Japanese car. Forget American car. Chevy my ass!
No need. Let them commit suicide. Years ago, I went to a K-mart. When I got to the store, it was 9:00pm, the store clerk stopped me at the gate and told me to come tomorrow. No, I didn't go back to Kmart "tomorrow," I went straight down the street to Walmart. Years later, I heard K-mart went bankrupt. Let the American financial system go bankrupt. Then we will see a better system.
i daytrade pennies and if this tax were to pass, it would make trading them much much harder....so far this yr i've done about 2k a day, but with rough estimate of 20k on each trade i put on about 25 round trips a day, i would be losing 500 a day, so the govt would think they would be getting 2.5k a day in taxes from me when they would really be getting zero because i would stop trading
First, it will never pass. Defazio, whose bill it is, is at war with Obama's staff as of this week. War. Obama pulled Defazio aside apparently and said, "we're keeping score you know . . . " This was apparently on an unrelated issue, but Defazio has been beating up on O'man. The fact that it's his bill is the biggest negative for it ever passing. It has no chance whatsoever. That being said, the penny stock thing is a zero sum game. Buy 25,000 wxyz at .60 and pay .003 round trip tax. If it goes up 10% to .66 you make $1425. Penny stocks are below $1 for a reason. They are normally distressed companies, often hard to borrow. Buy 215 XOM at $70 and pay .35 cents round trip tax. 10% gain or $7 would net you $1425. It goes off of principal amount. Both these trades were $15,000 in principal. It's the same $37.5 per trade, or $75 round trip no matter how you look at it. Zero sum game. I in fact would lean more towards higher priced, high beta names if it were in fact law. With something like BIDU or GOOG at least you have movement. Buy 25,000 of a penny stock and you may watch it for days before it moves one way or the other. IMHO.