Just Tuesday morning, I was watching Vanguardâs John Bogle discuss the need for a transaction tax on investments. Now doesnât that seem to be a commenter who is hoping to move more people into a buy-and-hold (aka, till-death-do-us-part) strategy? That's the same strategy that has pummeled the average investor over the past 12 months. Why would Bogle even consider something so radical? Oh, thatâs right, he runs a company that earns it keep by providing low-cost index funds with low turnover. Of course, low turnover would provide protection against a trading tax and hurt those pesky advisors who attempt to get out of the way of a speeding truck, also known as a market correction. http://articles.moneycentral.msn.co...18/P4/DisciplinedInvestorJournal20090121.aspx
John Bogle wouldn't exist if it wasn't for ACTIVE investors. And active investors wouldn't exist if it wasn't for TRADERS.
If the transaction tax approached 1/4% of the profit, or were similar to the commission, it wouldn't be so bad. But when talking futures, why would anyone want to pay $500 to trade 1 contract of a commodity??? It would kill it off and all the jobs it supports.
The transaction tax is 1/4% on the total purchase & sale price. For 1000 shares of AAPL, $200 tax to buy, $200 tax to sell. That goes for whether it was a profitable trade or not.
There was a time where a tax's sole purpose was to collect funds from the general population in order to fund the governments limited services Now taxes are merely a tool for the elites to opress the masseses into the behavioral outcome they want Of course the tax will come with special loopholes for the elites.
Apparently, tax is also used as an incentive for drive out companies and prevent small business owners from ever considering hiring employees. What kind of idiot would consider moving to California or New York City to start a non-retail smal business? The taxes, unions, costs, nad burdens are unbelievable.
sorry I have been a bit out of the "loop" on this matter do the people pushing this want to reduce the impact of these folks and would they be taxed more than the average retail trader if the law were passed ? www.flickr.com/photos/digitalchain/2607114118/sizes/l/
What bullshit ! What about taxing the OBSCENE profits of the CME group ? And what about this board member ? http://www.marketswiki.com/mwiki/Charles_P._Carey He looks like someone from the mob ! Yeah, that right...we're getting "taken" by the mob. And where's the CFTC in all of this ? THEY APPROVE ! (at least the merger part that is..the fees are just due to the monopoly position of the CME)
I hope this transaction tax never gets out of the discussion phase or is killed outright, but I think we have to have a plan B just in case. Maybe a "flat" transaction tax of 1 cent per trade. (Just like the other garbage SEC fees.) "Flat" sounds fair and is easy to implement...