90% of trades? for me, closer to 99% of trading would be stopped. wide spreads and no liquidity, welcome back!
Thats why its NEVER GONNA HAPPEN. If it did, by some unbelievable fate of Obamination, I would be taking an early retirement. I payed over $7,000 in SEC fees last month alone. That should be enough for them for doing very little to next to nothing. It reminds me of last year when Maryland increased its "millionaire tax" to 9.5%. Most millionaires moved out of the state and Maryland ended up with $100mm less in income tax revenue from the previous year. (Bravo... Clap Clap) Redistribution of wealth or raising taxes will always has its drawbacks. Its bad enough I essentially have to work the 1st half of the year for free (due to high taxes), before I start earning my take-home/$$ i save/$$ i spend as a consumer to keep the economy going. Moc
Logic has NEVER stopped Democrats from trying to "even the playing field" by redistributing wealth. Fortunately for the time being, the American people ARE logical enough to put a stop to these insane, socialistic policies that Obama and the Democratic congress keep spewing.
You'd still have funds/portfolio managers and the public adjusting their positions periodically. If you are trading intraday a lot using market orders, it's a big hurdle that likely wouldn't be overcome. I think the GETCO's and Tradebot's of the world would just be changing a few lines of code in their algorithms to adjust... They probably already have a variable that accounts for SEC fees that they can change to .2500127. It's a net negative for the market, but the hardest hit will be those who don't take into account execution costs.
It's the typical democrat way. Tax anyone who tries to take care of themselves to death, and use the money to buy votes. Then they take care of the uber rich and themselves.
Got an email from Sen. Schumer on Jan 20, 2010, stating he's AGAINST this tax. Treasury Sec. Geithner has also voiced his opposition. Hopefully cooler heads will prevail! Have any of you contacted your senator/congressman? And what was the reply?
question - has any OTHER major economy put in a similar tax, such that before and after volume was noted?
Sweden did in the 1980's http://www.elitetrader.com/vb/showthread.php?s=&threadid=150546&perpage=6&pagenumber=883