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

zdreg · Feb 17, 2009

"The irony is that using this reasoning for the transaction tax is just a selling pitch, as the true damaging speculators like Goldman, JPM, Morgan Stanly & gang will have their exemptions." (anaconda)

read the last sentence above carefully. it was not too long ago you had a bunch of whiners on ET complaining about the pattrned day trading rules.

i previously said it all depends on goldman. if goldman will accept it in some kind of deal it is a done deal.

bwolinsky · Feb 17, 2009

Quote from zdreg:

$250 X 200 trading daysis $50,000 + commissions. at just 2:1 gearing you would be broke before the middle of the year with a flat performance.

Yeah, maybe if I traded everyday. But I don't, which most "traders" on here don't realize you shouldn't have to trade everyday, because the market isn't wrong everyday.

bwolinsky · Feb 17, 2009

Quote from Landis82:

it is filled with 24 year old Interns that have absolutely ZERO clue about Economics.

It's not really that they're 24 years old that is the problem than that they subscribe to liberalized doctrination and fail miserably at standardized tests about economics, including LSAT and GMAT.

zdreg · Feb 17, 2009

Quote from bwolinsky:

Yeah, maybe if I traded everyday. But I don't, which most "traders" on here don't realize you shouldn't have to trade everyday, because the market isn't wrong everyday.

everyday there are trading opportunities in individual stocks.

risktaker · Feb 17, 2009

Better brush up on his Chinese language skills.

This country is fucked!

Quote from zdreg:

you better brush up your resume.

Landis82 · Feb 17, 2009

Quote from Anaconda:

Not really.

The financial (and legal) industries grew because they directly leech off the ever growing money supply. They benefit from it. Manufacturing does not.

Duh.
You would not have the growth in the financial service industry unless they could write-off interest expense immediately.

It's ALL about the tax code my friend!

bwolinsky · Feb 17, 2009

Quote from jnorty:

Its funny as hell cnbc nor any major online discounter from scwab to amtd has even mentioned any threat of this tax.If it were an imminent threat i promise you they would be going wild as they'
re basically out of business if this passes. From what i understand this transaction tax has been introduced many times over the past 20 years and went nowere. no major high ranking honcho has really even discussed this. no way in hell this gets passed anytime soon

This says more about their rationality than about their options as a going concern. They know, and I hope any trader on the board knows this tax is not going to pass, because it is counterproductive in every sense of the word.

I'm also taken aback that this thread continues to exist. Stupid people will say what stupid people say, but that doesn't mean we should pay attention to them.

bwolinsky · Feb 17, 2009

Quote from zdreg:

everyday there are trading opportunities in individual stocks.

Yeah, and the probability you find one everyday is unlikely, no matter how much convincing you tell yourself.

bwolinsky · Feb 17, 2009

Quote from Landis82:

Duh.
You would not have the growth in the financial service industry unless they could write-off interest expense immediately.

It's ALL about the tax code my friend!

Hi, go study accounting and economics. You obviously don't know what you're talking about.

If you would like to go down that route, the best thing you can say is the lowering of marginal tax rates by reagan from a top end of 70% to about 35%. This has nothing to do with interest expense being a write off. In this day and age, the best companies have no debt and do not, therefore, have any interest expense to write off. Go back and do some homework before making grandiose, ill-conceived statements.

Furthermore, far from it being the cause of our growth, it is now the reaper of our destruction, as debt, and overleveraged companies finally caught up and destroyed the economy.

zdreg · Feb 17, 2009

Quote from gnome:

Of course. It's raising "somebody's taxes, but not mine".

It would cripple the exchange business in the US, so can't see it sticking even if passed.

They would probably have to exempt the commodity exchanges (can't see farmers and other commercials paying the fee on "food", you know).... everybody would soon be trading pork bellies instead of GS.

be realistic. I don't recall the old saying exactly: legislate in haste retract in leisure,
once it is instituted it will take years if not decades to get rid of it.