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

[NielsenDK]

Quote from rsikit:

Thank Guru for the Articles, good find. The one I dont like is from NelsonDK below you that article is not good I dont worry about the IMF but when someone is testifying in front of the House Ways and Means Committe( where Defazio's bill is) that I do not like. But when I looked up who was testifyin its a liberal thjink tank so we shall see, but he is also respected. I will keep looking at the committees schedule to see if they look at it at all, I mean Defazios bill.

I dont like it either. But thought we need to keep each other updated.

Keep in mind that the following are against transaction taxes:

IMF, ECB, FED, Germany (after last election), Sweden, Denmark, Italy, UK, Switzerland, Singapore, Hong Kong, India (after last election).

Let us hope that republicans regain the majority in Congress next year.

 

[listedguru]

Quote from NielsenDK:

http://blogs.wsj.com/washwire/2009/10/08/turning-to-wall-street-to-fund-a-new-stimulus-package/

The proposals came at a House Ways and Means subcommittee hearing on how to strengthen the nation’s tattered safety net.

The financial-transactions tax, to take effect two years from now, “would apply as broadly as possible, [on] everything you can,” including all sorts of stock, bond and derivative transactions, said EPI President Lawrence Mishel. It would not apply to day-to-day consumer financial transactions, however, he said.

The tax – between 0.1% to 0.25% of the transaction’s value – could raise between $100 billion and $150 billion a year. In addition to covering the cost of a new recovery package, it could contribute to deficit reduction in coming years, advocates say.

Wow that is scary. I cannot believe they think this would actually raise $100 - $150 billion annually. This would be a net negative revenue producer and absolutely decimate the American financial industry. Good thing it's very unilikely to happen...

Also I wonder what their rationale is for waiting (2) years to implement it? Oh let me guess - the economy will be rip roaring in another two years and everything will be just fine (LOL)...

I think we need to get in touch with this think tank group directly and set them straight...

-Guru

 

[rsikit]

Nelson,

Thanks for the article, it helps to know the good and bad and where we can try to make a diffference. I would also write to the House ways and means committe about the article, that matters more then writing the think tank, those types are set in their ways.

 

[listedguru]

Quote from rsikit:

Nelson,

Thanks for the article, it helps to know the good and bad and where we can try to make a diffference. I would also write to the House ways and means committe about the article, that matters more then writing the think tank, those types are set in their ways.

Is this common practice to have these 'think tanks' testify before committies in congress? I guess I never knew this...

-Guru

 

[rsikit]

Yeah from what I read it was a hearing on all sorts of things not just this tax, it ust happened to be one of the things this guy brought up. About 7 other guest spoke on economy and job from different states and what not. No one else talked about it ths meeting was not about the tax it was about general economy. Although Rangel is the head of the committee and when all the hoopla was going on about taxing the AIG bonuses last year after they get the bail, remember they wanted to tax the bonuses 100% to get the money back, rangel was opposed to that saying he beleived it shouldnt be taxed.

 

[seasideheights]

A new story out tonight from the WSJ. Not good. I can't paste the copyrighted story, but check it out if you have a DJ news feed. Here's the headline & time of the story.




DJN: =WSJ: House Democrats Weigh Tax On Financial Transactions
(Dow Jones 10/09 18:36:56)


By John D. McKinnon
Of THE WALL STREET JOURNAL

 

[moonmist]

Quote from seasideheights:

A new story out tonight from the WSJ. Not good. I can't paste the copyrighted story, but check it out if you have a DJ news feed. Here's the headline & time of the story.




DJN: =WSJ: House Democrats Weigh Tax On Financial Transactions
(Dow Jones 10/09 18:36:56)


By John D. McKinnon
Of THE WALL STREET JOURNAL

The following is the link to a video by Mckinnon regarding the transaction tax:


http://online.wsj.com/video/wall-street-facing-new-tax-hit/0E5F049E-EF2E-4F73-9CDA-65DAC82AEE82.html

 

[listedguru]

Quote from moonmist:

The following is the link to a video by Mckinnon regarding the transaction tax:


http://online.wsj.com/video/wall-street-facing-new-tax-hit/0E5F049E-EF2E-4F73-9CDA-65DAC82AEE82.html

That video is pretty scary. He makes it sounds like this thing is really gaining momentum. It doesn't mention any names just says something along the lines of the dems support this as a way to protect mainstreet. I guess they don't realize this would hurt main st (all investors).

I still don't see this ever getting passed. But if it really is picking up steam it's time to lobby against this big time. It's basically a big time tax on middle america...

-Guru

 

[listedguru]

Quote from seasideheights:

A new story out tonight from the WSJ. Not good. I can't paste the copyrighted story, but check it out if you have a DJ news feed. Here's the headline & time of the story.




DJN: =WSJ: House Democrats Weigh Tax On Financial Transactions
(Dow Jones 10/09 18:36:56)


By John D. McKinnon
Of THE WALL STREET JOURNAL

Just finished reading the article. There is an interesting quote from Barney Frank:

In an interview Friday, Rep. Barney Frank, chairman of the House Financial Services Committee, said he supported the legislation's idea of recouping future losses from the industry.

"I was one of the ones who suggested" the idea for the TARP provision, said the Massachusetts Democrat. He said he didn't specifically propose a financial-transactions tax. The provision could be structured as either a tax or a fee, he said, and could be a one-time provision rather than a permanent tax.

That would make it less likely that parties to financial transactions would seek to escape the tax by moving activity to another country. He said imposing such a tax "country by country...would be a problem."

But then there is this from Paul Volcker:

In response to a question at a House hearing in September, White House economic adviser and former Federal Reserve Chairman Paul Volcker said it "might be interesting" if Congress ordered a study of the idea of a transactions tax. But he pointed to the problem of driving transactions to other countries. "That's the No. 1 problem; you'll have to get some consistency internationally," he said.

To me it doesn't really sound like Barney Frank is all for it. It sounds like he's talking about some kind of fee on the banks maybe?

-Guru

 

[rsikit]

Yeah I did not like the video either Guru, there was an article on the WSJ website that talks about it as well, same guy in the video wrote the article. He did mention leadership is talking about it but its in preliminary discussions. John Boehner the republican minority leader came out and totally critiszed them for even discussing it. Barney Frank said he put in the Tarp bill last year a provision that talks about recouping losses if TARP wasnt paid back. That I remember him talking about when he was grilling all the bankers and said it was off the table till atleast the end of this presidential cycle. In the article he did say he didnt specifically propose a tax, but could be a tax or fee on banks if it came down to it. He said it would be probably a one time provision if it ever came thru as to not let capital fly out of the us. But this stuff was already known , from the time he grilled the bankers on tv. But I didnt like how it is gaining traction in the ways and means committee where the bill was submitted to at the begining of this year. Well hopefully if they discuss it they get it over with already and hopefully shoot it down quickly. I dont like this so far, it was looking good until this article. But we need to wait and see,