Kamala wants a 0.2% transaction tax

Discussion in 'Wall St. News' started by Math_Wiz, Aug 16, 2020.

  1. Math_Wiz

    Math_Wiz

    Kamala wants a 0.2% transaction tax to pay for her Medicare for All plan.

    If this comes to pass, where should we migrate to?
    Would trading the triple-ETFs still be viable?
    A tax on "options trades" is not specifically mentioned,
    although I wonder if that is included under the umbrella of "stock trades".

    https://www.elle.com/culture/career...0-healthcare-economy-gun-control-immigration/

    The transaction tax is mentioned in the last paragraph under the Healthcare heading.
     
    FWBGBS and AKUMATOTENSHI like this.
  2. R1234

    R1234

    If that came to pass, I would essentially not be able to make a living anymore given the number of transactions I do each day. It would be time to move abroad and live off my savings.
     
    gkishot, FWBGBS, Andrea Wylan and 2 others like this.
  3. guru

    guru

    FWBGBS and salomonos2235 like this.
  4. It would put all of us out of business. Derivative trading (futures) would be 99.9% dead. Each ES trade would set you in the hole 6 points or more from that start (someone else can do the exact math). Impossible to overcome this.
     
  5. Let's be honest the right is terrible but the left will completely shut the economy down... Anyone supporting them has absolutely no economic understanding whatso ever
     
  6. 2 trillion revenue based on what... current numbers, or after she killed liquidity? Every single fund and ETF would need to increase their fees...

    I think this demand is too ridiculous, lets be real on how politicians actually work. I'm sure she is just saying this to get (more?) back deal money from big banks and HFT's to drop this policy plus it's a decent voter grab.
     
    KCalhoun likes this.
  7. ajacobson

    ajacobson

    Damages or eliminates HFT - liquidity could improve making it a good thing for much of the "size" community. Could move more of the available liquidity to lit venues. Might not be all bad and you knew the Dems were going to get it on to their platform.
     
    stochastix likes this.

  8. Would it be based on notional amount?

    E.g. 3350 x 50 x .002% = $3.35

    Per side so essentially near doubling (approximately) commissions? IB is $3.8 per side.
     
  9. guru

    guru

    That’s like taxing every round of Blackjack, or every time you pull a level of a slot machine, in addition to taxing the profit.
    I wonder what they’ll want to tax next, when the stock market will fold.
     
  10. elt894

    elt894

    I'm against an FTT, but there are a few things to keep in mind here:
    • This article is just quoting her platform from a year ago when candidates say all kinds of things to see what sticks.
    • Outside this site I see no mainstream discussion of an FTT. In 2008 there was a lot more serious discussion that never resulted in anything
    • We already have a 0.002% tax on option sales (as well as stock sales)
     
    #10     Aug 16, 2020