Senator Brian Schatz (D-Hawaii) is expected to introduce a new tax bill today. The senator says his bill would tax the sale of stocks, bonds and derivatives at a 0.1% rate. It would apply to any transaction in the United States or made by US citizens. https://www.cnbc.com/video/2019/03/05/democratic-senator-to-introduce-tax-on-trading.html https://www.vox.com/policy-and-poli...schatz-financial-transaction-tax-stock-market 0.1% is quite large. $100 tax per $100K stock transaction or $1K tax on $1M bond transaction.
if this passes, which seems likelier by the day, i'd have to imagine more and more US traders would give up citizenship and move to a country like, say the UK. even if as UK residents they'd still have to pay the FTT for US stocks/futures, they could trade foreign stocks/futures and forex with no FTT. i mean, a 0.1% rate is basically the death of retail trading, period. to give some perspective, trading just ONE ES contract would incur as tax of around $140.
It's a global trend and it's not just traders that are in their sights... Google, Amazon, Facebook, Apple dread this future French tax ‘GAFA’ Google Amazon Facebook and Apple – or “GAFA,” as they’re known in France – are easy to group together in the European imagination. They’re big, they’re American and they’ve tended to pay relatively little ta, thanks to legal loopholes and a business model that exists largely in the virtual world. Frustrated governments have tried to use the courts and the hammer of EU regulators to squeeze more money out of the tech giants, but it hasn’t always worked. So, rather than wait for international rules to catch up, France and a few others are embracing the tech sector equivalent of a financial transactions tax (a generic name for levies on transactions such as sales and purchases). It’s a messy idea, but politically it makes the right noises. Nothing about France’s so-called “GAFA tax” will please those who favour simple and lucrative approaches to raising revenue for governments. Inspired by an EU proposal that failed to get unanimous backing from the bloc’s 28 member states, Finance Minister Bruno Le Maire’s proposal aims to hit companies making more than 750 million euros ($850 million) in global online revenues with what amounts to a 3 percent tax on their gross digital sales in France. https://www.financialexpress.com/in...alcomm-puts-value-of-patents-on-line/1505197/
the bill will not both pass both the Senate and the House of Representatives " they could trade foreign stocks/futures and forex with no FTT." what a nonsense! these are not interchangeable.
i wish aoc would just stick to instagramming https://www.forbes.com/sites/timworstall/2017/08/28/how-many-times-must-we-say-this-a-financial-transactions-tax-raises-no-revenue/amp/ it has been tried many times including in the US and never resulted in anything positive.
The real problem isn't what will happen now, but rather in 2021. I think the odds are Republicans get totally crushed across the board, AOC and her ilk represent the future and will be setting the agenda. The odds of some form of transaction tax coming in the next 5 years are IMO at least 50-50, better start planning for the future.