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

Read what I wrote. They did the paperwork needed to qualify for broker/dealer status with the exchanges. There is a capital requirement also.

 

Where are all of the libs on this board? I've never seen them shy away from injecting their leftist views on this board before.

I suspect most of them are so young (libs on this board), they had no idea what the Democratic party was truly all about.

 

I saw DeFazio on CNBC early this morning...man oh man..if I looked like that I'd hate the world too!
I might not be much to look at, but he's fugly.

 

Did the transaction tax come up? If so, what was said?

 

Nope, everything I'm reading says stocks, options, and futures.

 

I understand that, but are you certain broker/dealers will be exempt?

 

I'm still hopeful that we're in the clear on this one. Everything I've read regarding the bill the senate is going to vote on tonight makes no mention of the trans tax. Have they released the text of the new bill yet?

-Guru

 

Yes, when I was looking into trading LSE years ago, I did some checking into why NYC prop firms would not trade this market when it was (maybe still is) quite lucrative in comparison to the US equity markets. The tax on the trades is what kept them out.

Title & Swift have the registration needed to make LSE viable for daytrading.

 

Here are two things I think we need to emphasize.

If they want to "punish the people responsible" there are better, more direct ways to do it, and there would be many negatives to the transaction tax, including:

-It unfairly punishes retail investors, who had no part in creating this crisis.

-It would destroy liquidity in the markets, which is supposedly what the bailout is supposed to fix.

-It would drive capitol out of the country.

"Stock speculators", short-term or long-term, long or short, were not responsible for the crisis, It was caused by:

-The Fed holding interest rates too low.

-Bad loans allowed by deregulation.

-Arcane derivatives based on those loans.

-Massive leverage used by investment companies trading in those derivatives.

 

I vote Democrat most of the time. I have always felt that a middle ground between Republican and Democrat fiscal and economic policy is the best. I don't mind paying more income tax under a dem administration but this trans tax is clearly bad for traders (me) and the markets. If the Republican party wasn't hijacked by the religious right (see Palin), over run with bigots, and had a cleaner environmental/energy policy I might consider voting for them.

This trans tax idea really is horrible though. Hope it fails.