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

Quote from Tide31:

No one that I have ever talked to or dealt with pays stamp tax in the UK (50 bp on sells) for the last 15 years at least. It's built into your account that every transaction on the LSE is a CFD (Contract for Differences). The brokers/banks are exempt from stamp, they buy it and you enter into an agreement to settle the 'difference' when you sell it. It is not a matter of 'if' it is being abolished in the UK, it is a matter of when. You see, there are some stupid people that do in fact still pay stamp in the UK to the tune of 3Bil GBP/ year.
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That's entirely correct!

The idiots who bring up the UK as an example of a country with a transaction tax on stocks are just that, idiots!

Traders there pay NO tax on daytrading activities. In fact, most of the "professional" platforms have ways to 'designate' LSE transactions as all being 'CFDs' so you won't pay stamp duty.

Some brokers, however, like IB, have no way around that issue, which still leaves me puzzled.

So it appears most of the transaction tax being paid in the UK are by mom 'n pop bagholders and other entities which due to certain regulations are forced to pay. And even then, many are for *abolishing* the ripoff fee.
 
The public believes it. What kind of look do you get when you tell someone you're a day trader? Do you kind of get that look of loathe?

Volume will dry up initially but since the big banks will be exempt it will eventually come back. The markets will be no worse for wear if this passes. There will be a loophole somewhere. Someone will find it.

Quote from listedguru:

Yeah speculators and 'day traders' caused all these problems (LOL). Well implement this tax and watch liquidity and the market go bye bye:)

-Guru
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Quote from the1:

The public believes it. What kind of look do you get when you tell someone you're a day trader? Do you kind of get that look of loathe?

Volume will dry up initially but since the big banks will be exempt it will eventually come back. The markets will be no worse for wear if this passes. There will be a loophole somewhere. Someone will find it.
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First post, this is a joke right, funny. But seeing as 63%+ of Americans owned stock in one form or another according to Princeton survey in 2006 (Mutual funds, 401k, company stock etc...), who is your majority of Americans? Of the 37% lets say that don't, what percentage of them vote? This is the same argument as the Cap Gains one. Google 'Laffer Curve' and get back to us. Increasing taxes does not increase revenue historically. We're NOT daytraders, SOES guys were daytraders, we're Short-term Investors thank you, and we want our own COUNTRY. We'll be showing up to buy your house soon.
 
Problem is no CFDs allowed in US. And I agree that the public will be for the tax. Why not generate whatever revenue at the expense of non-productive activity. I am telling you guys, this tax will eventually come up for serious consideration. I think in the end it will come down to whether or not the "big boys", exchanges/goldman/morgan etc., decide that it's absolutely necessary to fight this thing(would depend on how tax is proposed). Only then do we have a chance, but they'll be fighting against stiff headwind. I would imagine CNBC will be on our side. We need to write the anchors to constantly rail against this thing all day and grill politicians that come on air. Cramer needs to redo the "They Know Nothing" and come out every night and go ballistic against it. I think he would if talks about the tax heated up. I mean who are his viewership.
 
Quote from jj69:

Problem is no CFDs allowed in US. And I agree that the public will be for the tax. Why not generate whatever revenue at the expense of non-productive activity. I am telling you guys, this tax will eventually come up for serious consideration. I think in the end it will come down to whether or not the "big boys", exchanges/goldman/morgan etc., decide that it's absolutely necessary to fight this thing(would depend on how tax is proposed). Only then do we have a chance, but they'll be fighting against stiff headwind. I would imagine CNBC will be on our side. We need to write the anchors to constantly rail against this thing all day and grill politicians that come on air. Cramer needs to redo the "They Know Nothing" and come out every night and go ballistic against it. I think he would if talks about the tax heated up. I mean who are his viewership.
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Be careful.

Additional Exposure to this tax may be counterproductive considering how the general public is seemingly in favor of it.

It's best to bat down articles as they come up with responses to the stories directly on the article's webpage as the URL's are posted in this thread. That's a way to get our voice heard while not inadvertantly spreading the flames.
 
Quote from Tide31:

I'm sure that a lot of this has been covered, but it could never happen. Pete and rePete (Stark and the guy from Oregon, so left they 'goose step' into Capital) were politely dismissed when they initially brought it up in September. Imagine a $60 stock where u had to pay .15 cent tax on way in and .15 on the way out. We would have to go back to 1/4 point spreads. Whats the use of going to decimals, then like 5 years later instituting a 50 basis point round trip tax. It would kill the already decimated economies and state/city govt's of NY and Chicago (Obama from Chicago, IL) for certain. This because of the dramatically reduced taxable revenues produced by the banks/exchanges/brokers among others. These types of increases don't work. Clintons higher Cap Gains tax produced less income than the lower tax.

No one that I have ever talked to or dealt with pays stamp tax in the UK (50 bp on sells) for the last 15 years at least. It's built into your account that every transaction on the LSE is a CFD (Contract for Differences). The brokers/banks are exempt from stamp, they buy it and you enter into an agreement to settle the 'difference' when you sell it. It is not a matter of 'if' it is being abolished in the UK, it is a matter of when. You see, there are some stupid people that do in fact still pay stamp in the UK to the tune of 3Bil GBP/ year.
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thank you i have been trying to tell the people on this board that it would not effect them trading in the least bit. exemptions exemptions exemptions. little guys big and small. now if you want to trade retail through ib those are the accounts that will be effected. so get into a group llc prop etc that is an exchange member and enjoy not paying this tax ala the traders over in the uk
 
Quote from seasideheights:

Forward to 5:12 in the Archived Webcast

http://www.house.gov/apps/list/hearing/financialsvcs_dem/hr021109.shtml


Frank talks about phasing the transaction tax in now.
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just watched the video -- according to barney rubble, "something like this [transaction tax]" is coming within four years as mandated by some amendment to TARP . . . this is shaping up to be something that'll be breathing down our necks until it's voted on or someone does a study about why it will fail . . . at least the senator that brought it up (Lynch from MA) was only referring to stocks and not futures or currency.
 
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