Not like it really matters because liquidity would be completely dead but would Canadians have to pay this tax?
Except I am not "Wall Street". I am a small trader...Main Street. Business will be exempt. (But will be hurt indirectly). The socialists know what they're doing, too. This tax can be sold to the thick people that votes them into office. Really, what this society spends its money on, the TV and movies it watches...it's clear we've been dumbed down for so long that it's quite easy to remove cash from us. And even George Bush warned us: "Fool me once, shame on â shame on you. Fool me â you can't get fooled again. http://www.youtube.com/watch?v=eKgPY1adc0A First WMD's, now Depression II.
any here's even the worst thing... If you have no interest in day trading, wouldn't you want to pass this? I mean let's be honest day trading really provides no value for the economy (other than providing liquity) Now others may say that this is extremely important, which I agree it is, however if you wanted to buy a stock for the long term in Britain, I'm sure you'd be fine given their liquity. The more and more I think about it, is it I have no bias towards day trading, passing this makes sense to me.
No this hurts long term investors as well because of the extra fee, and the spreads on stocks will increase dramatically. You'll get hurt going in and out as a long term investor. It screws over everyone actually.
Most countries don't have any transaction tax. The only country I can think of is UK which has a stamp duty.
On that note,here's the reaction from a longer term trader on another forum I posted this to: I can see this thing playing well to Joe Sixpack.
right...no value to economy...what about six figures in taxes i paid last year? wait a minute..i'm not even US citizen,because INS lost my paperwork and unable to find it for 10 years. and yeah..and i'm paying a salary to those fucks.. what about profit from day trading,which i did'n spen at walmart,but "invest" in LEH,WaMu,GM bonds? still no value? well.. tell you what-they just make me one step closer to idea of abandon this country and move someplace else. and then- you are not going to get a single fucking penny from me anymore. let's see,how your credit driven capitalist economy would work then..
Do you have any idea what this would do to Wall St? It would effectively be done. All the discount brokers would be gone. All of em. Many hedge funds would be toast, and the big firms would be banks, period. The exchanges would be a fraction of their former selves. Lots of people in the industry would be unemployed. BILLIONS would go overseas. The population of Dubai, which is already growing fast, would explode. Government revenues from the industry would plummet! Raising cap gains is almost as lame. Guess what happens to revenues when you raise cap gains rates? They drop. This isn't Laffer Curve theory stuff as in income tax, this is fact. Transactions drop. This was proven both last time rates were raised, and again when dropped. Obama even acknowledges this happened! Raising either of these taxes is lame, but the transaction tax is probably the dumbest move in the history of taxes. I do not know what the Euro taxes are, but this could be a reason why so much trading is done here, and why so many euros have accounts with IB!