Tax on Trades Should Be Part of Rescue Plan, Some Democrats Say

If the proposal is just for a tax on profits then that's manageable obviously.

 

Unless you're Jack Hershey in which case it would be trillions of $.

 

Hmmm, interesting. I'm still thinking it's on the transaction and the articles got it wrong, though, since that's what his original letter said and I don't see how it being on the profits is much different than raising the capital gains tax?

 

I'm thinking the article misunderstood it.. to just tax on the profits would be just a simple addition to the cap gains tax or income tax for short term traders

 

And that is probably the most credible source in this thread. I think we would be hearing more about the tax in the news if it had much traction.

 

Absolutely... hopefully this means the transaction tax was just a non-starter and this is the best he could come up with

 

why would one put a tax on stocks when they're in a huge bear mkt? you add taxes when things are good. its like pouring salt in a wound. lets say avg person on here trades 300k of stock a day. thats only arounf 10k shares a day. at .25% thats $750 a day in taxes. lol 99.9% of this board will be ex traders in hours

 

I hope you guys are right, Google News was saying this article was only from about 10 minutes ago and it mentions it as .25% of the transaction and basically says traders are like addicts on dope.

http://www.bizjournals.com/pacific/stories/2008/09/29/daily26.html

 

Okay, this article quotes DeFazio directly, I don't think he'll be dropping this. Email your own representative, I think, and stress to them the impact this can have on jobs and the dollar. I think emailing DeFazio is most likely falling on deaf ears.

http://www.registerguard.com/web/search/131419//story.csp

Excerpt:

“I think it’s too risky to play Russian roulette with the fragile structure of the American economy,” said Scott Bart lett, a former local Democratic Party chairman and member of the Lane County Budget Committee. “Yes, Wall Street created this problem, but it doesn’t mean we should just ignore it.

“This is really destroying the entire credit market,” he said.

DeFazio said he lobbied for a 0.025 percent securities transfer tax to be added to the bill to protect taxpayers, but was ignored. A securities transfer tax, DeFazio said, would have a negligible impact on the average investor and provide a disincentive to high volume, speculative short-term traders.

The United States has had a similar tax in the past, DeFazio said. Such a tax would not put U.S. markets at a competitive disadvantage, he added, noting that the United Kingdom has a financial transaction tax of 0.5 percent, as do many other exchanges.

“That would be the only way to get my vote for a proposal that I don’t think will work,” DeFazio said.

 

.025% or .25%??