Dear- I heard few countries charge transaction tax, proportional to the amount of BUY/SELL, such as UK, HongKong and Korea, .... (fortunately with NO CapGain such as in 1040) As stated in the candidate Sanders, there might be a new tax in US, for 0.25% together with pre-existing 1040 federal tax depending rate based on bracket. If Sanders win the campaign, probably US tax rate for traders might be the worst in the world. Consequently, those in Wall Street and ET may be in a bad situation. Example) Suppose a trader trade 4 times a month (With 100K, he buy/sell as much as 400K), then he pay 1% for the new tax (1K). Accumulating for ONE year is 12% or more if compounded. Therefore, over 40 years, such as 30 to 70, How much is he expected to pay more, in adddition to 1040? Suppose some trader shows 20% after 1040 and commission (roughly 30% before 1040 federal tax, with 33% rate bracket), like before, then his annual growth rate will be reduced to 8% (=20-12). Someone calculate loss in this case for 40 years, with a new tax system. Example2) Furthermore calculate additional lose to tax if a trader buy/sell 10 times per month. Example3) Calculate if a trader buy/sell 2 times per month.
4 times of buy/sell, in above case, is roughly 20% buy/sell everyday (20K) in average, since there are roughly 20 trading days in ONE MONTH. With the new tax introduced, there might be significantly decreased volume in the whole US market, for the concern in tax.
I hope it's not going to pass in the Congress. I don't believe he can apply executive order to taxes. ;-)
Even if Bernie somehow won.... he could NEVER get this tax passed. He will be the biggest do-nothing president ever. The socialism he proposes can't be done via executive action.
the establishment Republicans are a clueless bunch of idiots who have led the US in cahoots with the Democrats toward financial disaster. the millennium generation are clueless what it means to work. you are likely to see a Democratic president not Clinton, followed by a Democractic congress. in desperation to cover a budget deficit they will institute an FTT(financial transaction tax). once in it is never gotten rid of it.
Everything Obama has done via executive action has been in the category of selective enforcement. I.e he doesn't agree with immigration laws, so he chooses not to enforce them. He doesn't agree with the defensive marriage act, so he chooses not to enforce it. How can a tax be implemented via executive action? The constitution clearly states that only the congress has the authority to levy a tax (Article 1, section 8)