at 1/10% you will be paying a 25% tax. if u turn over your capital once per day. if u turn it over 2x you will be pay a 50% tax if u turn it over 4x you will be paying a 100% tax on your capital. eg. .001 x 250(# of trading days) x 1 (number of turnovers) = .250 eg .001 x 250 x2 = .500 eg .001 X 250 x 4 = 1 eg if u have $100,000 in capital u will pay between $25,000 and $100,000 in transaction tax before any profit or loss. http://www.rallycongress.com/no2tradertax/
Minimum annual transaction tax with one turnover per day ( 1 buy and 1 sell) and $100,000 of capital is: $100,000 * 0.001 * 2 * 250 days = $50,000
my assumption that it would only be imposed only on a closing transaction will likely be proven wrong. thx.
My assumption is that the transaction tax will be imposed on every transaction regardless of it's type. Which is probably what it is.
I was the 644th person from New Jersey to sign this petition. We might have to do better than that, lol