1/4% Tax on all stock trades pushed in NY Times today

If there are exemptions, only the exempted will be able to do that, and even if no one is exempted, I'm not sure it would make decent money as all remaining liquidity providers would do the same thing and post bid and offers just wide enough to overcome the tax, waiting for rare fool market orders.

Any movement in the stock would kill your activity or it would be at least a lot harder than now.
 
Quote from TraDaToR:

If there are exemptions, only the exempted will be able to do that, and even if no one is exempted, I'm not sure it would make decent money as all remaining liquidity providers would do the same thing and post bid and offers just wide enough to overcome the tax, waiting for rare fool market orders.

Any movement in the stock would kill your activity or it would be at least a lot harder than now.
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Only the exempted will be able to do what?
 
To profit from the bid/ask spread.

I just wanted to say that if there are exemptions, those exempted may still provide a market that is thinner than what the non exempted would need to profit. So it would be almost impossible to compete with them since they can improve bids/asks a lot more than you.
 
Yeah thats from the 13th , I found the Tarp bill from the 14th that barney frank amended and it didnt incluide the tobin tax
 
Does anyone know where Geithner stands on the transaction tax? I know him and Larry Summers are buddies (from an article I read) so hopefully he is against the tax too...

Also was the transaction tax part of the tarp proposal that got voted down the first time or didn't it even make it into that draft?

I guess I don't fully understand how these votes work, etc. Wouldn't the congress have to debate the transaction tax, etc before attaching it to a bill?

I still say this tax never sees the light of day:)

-Guru
 
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