News articles about the Financial Transaction Tax

Discussion in 'Wall St. News' started by Math_Wiz, Jan 28, 2021.

  1. It appears someone made a 180. From arch conservative to suddenly wanting to save the world AFTER she amassed her wealth. That represents someone who became wiser but definitely not someone who had a life long conviction. The most recent sources of donations are again raising questions whom she has truly sworn allegiances to.

    https://www.google.com/amp/s/www.po...rofile-young-republican-2020-president-226613
     
    #31     Feb 4, 2021
  2. If the ftt truly only applied to wall street trades (meaning, trades that apply to trades done by professionals) then that would be a fair cost to raise money. The cost would be born by all investors and that cost is negligible to investors. But it is not negligible to retail traders. It's a death sentence. It would be the same as wanting to introduce a tax on art transaction. Those who conduct large art transactions would hardly feel the dent but it would be a death penalty to all the poor independent small painters, handcraft men and women, souvenir sellers. I don't understand why democrats cannot differentiate between those two groups.

     
    #32     Feb 4, 2021
    KCalhoun likes this.
  3. gkishot

    gkishot

    If the cost is 'negligible' then what is the point of having the tax? One can't have it both ways, create a revenue stream out of taxing people and claim that the tax cost is small. Small cost leads to a small revenue.
     
    #33     Feb 4, 2021
  4. 10 basis points on large transactions by professionals would lead to very large tax revenue. Of course the big question remains whether that revenue would be used for purposes that benefit broad based society. Investors themselves would not get hurt much as 10 BP is negligible on long term holdings and portfolio trades. But it would have a huge impact on retail traders. I think democrats need to tread very carefully here because they are essentially declaring small retail guys their enemies. Not sure that plays well among the general electorate. It is shocking that Warren has zero qualms nor worries about letting brokers collude with hedge funds to suddenly disallow the purchase of shares.

     
    #34     Feb 4, 2021
  5. gkishot

    gkishot

    What is the difference between professional traders and retail traders exactly in terms of tax impact? Are you saying that unlike retail traders professional traders are holding their positions long term?
     
    Last edited: Feb 4, 2021
    #35     Feb 4, 2021
    AKUMATOTENSHI likes this.
  6. KCalhoun

    KCalhoun

    Can someone do the math for a daytrading stocks example? eg .1% how much tax on 10 roundtrips of 300 shares of a $30 stock?
     
    #36     Feb 4, 2021
  7. gkishot

    gkishot

    $30*300*0.001*10 = $90 a day, $90*250 = $22,500 annually if one side is taxed.
    $180 a day, $45,000 annually if both sides of a transaction are taxed.

    Against available trading capital of $30 * 300 = $9,000.
     
    #37     Feb 4, 2021
    KCalhoun likes this.
  8. New York Financial Heavyweights Attack Stock Transfer Tax Plan:

    https://news.bloomberglaw.com/daily...hts-back-efforts-to-revive-stock-transfer-tax

    The added tax measure wasn’t among the numerous initiatives included in Cuomo’s fiscal 2022 budget proposal.

    Freeman Klopott, a spokesman for the state budget office, said Wednesday that the governor would review the bill if it passed, but he warned that it would cause firms to shift trading elsewhere.

    “In the digital age, it would be even easier for transactions to simply be moved out of state to avoid the tax,” he said.
     
    #38     Feb 4, 2021
    Occam likes this.
  9. #39     Feb 4, 2021
    Occam, Math_Wiz and gkishot like this.
  10. No, professional as someone who acts on behalf of another financial institution and/or someone who is licensed to trade, and/or someone who holds directorship or control over a financial institution.

    This would eliminate high frequency trading, all hedge fund short term crap but keep all the long term investment industry untouched and it would keep small independent traders alive. Win win for society, that is what democrats ALWAYS talk about, let's see what they actually do.

     
    #40     Feb 4, 2021