A large fund buying and selling 50,000 e-mini S&Ps would pay over $10 million in taxes.
All the futures markets would just die.
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1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
A large fund buying and selling 50,000 e-mini S&Ps would pay over $10 million in taxes.
All the futures markets would just die.
Quote from drukes1234:
You guys realize this has been floated around for YEARS and while it would kill all of us, we shouldn't absolutely freak out because of some little NY Times article. DeFazio has no pull and Sommers when last asked about the transaction tax said it is not realistic and would do more harm than good.
Yes this is VERY scary but I can find articles promoting the transaction tax almost daily and from all the way back to 1998. I am actually confident Obama has a smart enough team around him that this won't happen, especially Larry Sommers.
Very true, a lot of discussion. For a bill to become law it would be a very difficult task to surmmount the lobbying pressure, getting the bill out of committee and endless debate on what exceptions there might be. During all of this a congressional session might end thus killing the bill and having it needed to be reintroduced. By then the circumstances driving support may have changed.
Still, we all should take time to contemplate what each of would do to continue with what we do in the case it becomes law. At least get some thoughts going to protect ourselves.
"While the fees would be a trivial expense for what the general public tends to think of as ordinary traders â people investing in stocks, bonds or other assets for some reasonable period of time â they would amount to a much heavier lift for speculators, the folks who bring a manic quality to the markets, who treat it like a casino."
... and who provide liquidity!!!
... and who provide liquidity!!!
Quote from obama-lama:
Securities Transaction Tax (STT) is coming. Nothing new. Now being propelled by the very State that has already lost the most based on taxation of financial services and in the future will lose the most by enabling such tax.
You give a NY Times journalist far too much credit. He didn't even give any credit to James Tobin or John Maynard Keynes who first proposed this kind of a tax back in 1930. Instead, he lauded economist Dean Baker from the CEPR in Washington.
Again, this legislation was originally proposed in Congress by Reps DeFazio (OR) and Wellstone (MN) back in 2000 as a way to tax short-term, cross-border foreign exchange transactions to deter speculation. Some of the dumbest Reps in Congress ( such as Marcy Kaptur of Ohio) co-sponsored the bill.
Suffice to say, it lacked VOTES back then and it will lack VOTES now.
But once again, ET doesn't understand this kind of legislation.
In fact, it's practically a waste of time posting here.
Quote from drukes1234:
You guys realize this has been floated around for YEARS and while it would kill all of us, we shouldn't absolutely freak out because of some little NY Times article. DeFazio has no pull and Sommers when last asked about the transaction tax said it is not realistic and would do more harm than good.
Yes this is VERY scary but I can find articles promoting the transaction tax almost daily and from all the way back to 1998. I am actually confident Obama has a smart enough team around him that this won't happen, especially Larry Sommers.
Smart or dumb doesn't matter. Do you really think CME (Chicago) is going to get government APPROVAL and SUPPORT into the multi-trillion OTC-clearing market without giving up something(s)? STT is a gift in that case.
Your confidence is misplaced. You need to have confidence in yourself to do the "right thing". Politicians will not save you.
Once unthinkable, now unstoppable
obama-lama
Quote from Landis82:
Not at all.
But due to your lack of brain power and inability to think for yourself . . . you continue to show everyone here on ET that you are unable to see just how much politicians have screwed over the financial markets and the U.S. economy.
My guess is that you hadn't even heard of the "Commodity Futures Modernization Act of 2000" until I brought it to the attention of your little "pea-brain", and probably had no clue that WTI crude oil was allowed to trade without CFTC oversight over in London and Dubai, or that such a commodities act allowed for the birth of Enron ( that screwed over the State of California which you reside ), or the fact that CDS came from this absurd piece of legislation and were allowed to trade OTC with absolutely no oversight whatsoever.
I guess you little pea brain doesn't remember that Clinton signed that act.
You little dems just don't get it. Truth just constantly evades you.
John
Quote from Landis82:
Suffice to say, it lacked VOTES back then and it will lack VOTES now.
But once again, ET doesn't understand this kind of legislation.
In fact, it's practically a waste of time posting here.
Votes can easily change when constituents call & push the idea.
Wildfires start easily.
Don't discount it.