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

Most of the proposals mention a trans tax on anything that trades. Some suggest various rates. That is usually how it is done in the last remaining dozen countries that still have this outdated, ineffective tax.

It would be in any politician's best interest to realize that there will be 125 million angry, investor class voters that would like to ruin their political careers if this tax is passed.
 
Quote from jj69:

Man, I love making a living trading. This transaction tax thing is gonna put a kibosh on it. And with all the populist anti-wall st. wave gaining momentum, with the dems in power eager to exploit it, I just get the feeling that this tax becoming law will be inevitable within the next year or two. Really really sucks. Will this tax apply to all markets? Futures, foreign exchange too? I think I read someone post that it was stocks only but then I also see posts calculating tax for ES, so I'm confused. So there's no small retail daytrading in UK is that right?
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can we close this thread for good this tax is not happening, i know the dems are in control but even the dems are not that retro active. and by the way those taxes in the uk and china are on the verge of being abolished. like i said in a previous post you will see the uk stamp tax revoked before you see a trany tax here in the states. this tax is counterproductive in times we need more productivity not the other way around.
 
Even if this tax passed (unlikely) new opportunities will present themselves. New low priced highly leveraged products will be created, people will start trading other low priced items making them more volatile and so on. Everyone isn't just gonna pack up and go to back to humping a normal job. Where there's a will there's a way, you will just have to adapt like many others have in the past.
 
Quote from listedguru:

Does anyone know what Paul Volcker's stance is on the transaction tax? I haven't really heard anything from him about it.

Just kind of curious (if anyone knows),

-Guru
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Summers is against tax.
 
Quote from OffTilt:

...... New low priced highly leveraged products will be created,.....
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I've been wondering about the cause and effect of the tax resulting in increased leverage. In the 1920's there was a transaction tax of 0.2 percent and most of the public was leveraged 10:1, hence the huge bubble and huge crash.

People will always find a way around obstacles even if they have to take more risk.
 
My fear stems from what I see as a gigantic secular macro social/economic retro-active movement. And the government will continue to make missteps compounding problems as it is wont to do. As markets over time continue to work lower reflecting this secular shift, targeting what is perceived as non-productive activity will come easy. I really hope the Tradestations, Schwabs of the world and other retail trading related entities have enough lobbying muscle.
 
Quote from OffTilt:

Even if this tax passed (unlikely) new opportunities will present themselves. New low priced highly leveraged products will be created,
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Right, traders will have to take more risk and that will result in higher rate of failure.
There is no way around.
 
More actions by the politically motivated and sold to the clueless public who has little idea of what the markets, speculation, hedging, etc are all about. - - - It just points to an environment which guarantees that the financial center of gravity will shift further to the East. The Chinese have a history of speculation/gambling/risk taking that is part of their culture. (The Maoist screwed things up for them for decades.) Combine this with our stupidity & laziness, and they will eat our lunch. Damned, what happened to the American pioneer spirit ?
 
Hopefully Todd over at Minyanville will provide some more color on this. I still say this ain't gonna happen. That would bring this market to it's knees once and for all. Not what the powers that be want to happen... Come on Summers squash this like a bug...

-Guru
 
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