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

This is a comprehensive study loaded with statistics on the aftermath of a small STT to fund just the city of New York.


IBO New York City Independent Budget Office Background Paper
November 2003
Reviving the New York Stock Transfer Tax

http://www.ibo.nyc.ny.us/iboreports/stocktransfertax.pdf




The tax would range from 0.625 cents to 2.5 cents per share, depending on share price.

So at a share price of $20 and a tax of 2.5 cents per share:

$0.025/$20=0.00125 or 0.125 percent rate which would be only half of the proposed tax of 0.25 percent.


IF investors do not migrate to other exchanges:
Trading volume would drop 18%.
60,000 jobs lost. (Those are just numbers, not people with families to feed)
Revenue gain would only be $3 billion.
$600 billion loss in equity value
$300 billion loss in household wealth


If trading activity drops by 1/3: 150,000 jobs would be lost and net city revenues would fall to ZERO.

I thought a trans tax was supposed to rake in hundreds of billions?
 
Quote from jj69:

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.
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Thank You Phil Gramm.
 
Quote from FightTheFuture:

This is a comprehensive study loaded with statistics on the aftermath of a small STT to fund just the city of New York.


IBO New York City Independent Budget Office Background Paper
November 2003
Reviving the New York Stock Transfer Tax

http://www.ibo.nyc.ny.us/iboreports/stocktransfertax.pdf
More...

This is precisely why Hillary Clinton, Chuck Schumer, Kirsten Gillibrand, and Mayor Bloomberg would be ALL over this.

If you think that New York, Boston, and Chicago aren't the centers of POWER in this country . . . you are sadly mistaken.
 
I would very much like to see a representative from IB or any of the other brokers weigh in on this board as to what their firms are doing to prepare for and/or fight this tax.

Many jobs in the industry in jeopardy if this bill passes.
 
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
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unusual. we are both right.
 
How about each of us contact a broker & ask them about what they plan on doing about the tax threat? Reply with the name of the broker you contacted & their reply.
 
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