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

[ChkitOut]

I have a feeling the only the only people concerned about this is us dorks here on ET.

I don't hear about any quant or high frequency funds getting their panties in a bunch.

What about the nyse or the cme? Not hearing much from the those who stand to lose EVERYTHING!

Come on guys, you're all a bunch of paranoid schizophrenics.

 

[aqtrader]

Just posted on another thread. It is here.

Title: A Technical Analysis of Impact of Proposed Transaction Tax
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Summary
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Want to know some detailed and interesting numbers. Please read on.
In short, the market will shrink 83.5% to a level of 16.5% of total
average trading volume. The proposed transaction tax total were to be
27.04 billion (minus losing capital gain, and others) instead of
naively expected 160 billion per year after considering the shrinking
volume. Consider losing capital gain and losing businesses, the
actual total tax increase from the market were close to zero or
negative. (UK actually already proved this result by seeing its total
tax amount plat (plus problems) after introduced the transaction
tax. ) If this tax were to pass, for short term traders, they were
out. Even the so so investors were to be hit hard as well. This is
what the "negligible" transaction tax will bring us. Please read more
if you want to know some detail numbers and why this can be concluded
from a different point of view as compared to many of you see the same
results from various angles.

 

[listedguru]

Quote from seasideheights:

Another bill pushing for a transaction tax.

http://www.govtrack.us/congress/bill.xpd?bill=h111-676

This bill doesn't even mention the amount of the proposed tax. It simply says a small tax on transactions - what kind of bs is that?

BTW I don't think this bill has a chance of passing either as it varies greatly from what Obama has talked about as far as healthcare is concerned.

Edit: It looks like the bill has been floating around since February 2005. Not sure what that means exactly, lol...

-Guru

 

[IanMacQuaide]

A Transaction Tax won't matter much after our assets are taxed. Cars, houses, boats, guns, stamp/coin collections...etc etc.
Or when every account we have at every bank is confiscated to pay off da Gubmints debt.

 

[ChkitOut]

Quote from IanMacQuaide:

A Transaction Tax won't matter much after our assets are taxed. Cars, houses, boats, guns, stamp/coin collections...etc etc.
Or when every account we have at every bank is confiscated to pay off da Gubmints debt.

Wouldn't it be a better idea to tax pizza's and french fries?

 

[Math_Wiz]

Quote from listedguru:

Thanks for the link. From reading it sounds like most bills never make it out of committee for a vote on the floor so let's hope that theory holds true here

-Guru

Yep, here's hoping!

+-*/ Math_Wiz

 

[Mr J]

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.

Whether the market is correct or not is not my concern. I simply take advantage of the tug of war between buyers and sellers.

 

[zdreg]

Quote from bwolinsky:

Anyone stating that there are benefits to this proposed tax is stupid. Your statements thus far have proven you don't know what you're talking about.

I doubt any bill with such a tax in it will pass.

? the legislators want to punish the hedge funds and wall street. they don't give a damn about traders on ET who will lose their livelihood. how many of you are going to take the time to write to congress.

how many of you took seriously the numbers which i presented which shows that if your trading results are flat you would lose 100% of your capital within 6 months.

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

forget about "hoping'. take action by writing congress and asking your broker to assist.

 

[fhl]

Quote from zdreg:

? the legislators want to punish the hedge funds and wall street.

I disagree.

I think the reason behind this is fairly simple. There is a certain class of people who want to be central planners. They want to "run" this country. Speculation is anathema to them. You can't have central planning and speculation at the same time. They contradict one another. Speculation must be done away with if you are to central plan. Everything the gov has done so far is about setting prices for homes, bonds, etc. Specs must be stopped!

simple as that

 

[jj69]

Quote from fhl:

I disagree.

I think the reason behind this is fairly simple. There is a certain class of people who want to be central planners. They want to "run" this country. Speculation is anathema to them. You can't have central planning and speculation at the same time. They contradict one another. Speculation must be done away with if you are to central plan. Everything the gov has done so far is about setting prices for homes, bonds, etc. Specs must be stopped!

simple as that

We must get more Republicans into Congress in 2010. Let's hope that this inexorable march toward socialism falls just short of truly materializing. Whenever there's economic upheaval, the door opens for the radical left to grasp for power. But this is still America. One thing that worries me again is how all this spate of frauds now coming to light might stoke further public outrage toward anything tied to wall st. I continue to be scared.