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

Quote from jj69:

Ok, so we're coming up against first legitimate test. According to this political insider interviewd by Erin Burnett just now, a huge jobs bill in addition to the transportation bill is coming and soon, possibly before year end. What guru noted above is in motion and moving fast. He says that wall st. needs to pay attention because transaction tax is specifically being discussed as a way to pay for the bills. The big money lobby better get their asses moving. I think we'll be hearing of the major players aligning themseves on this tax sooner than we thought.
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I didn't see the interview (maybe someone can post it later). I think the biggest obstable we face is this pending jobs bill and transportation bill. We need to be careful as Defazio is all over both of these bills. I still think we'll be okay but we need to stay vigilent.

I just can't see them killing off wall street and raiding everyone's 401k's with this tax to pay for some new bridges, etc...

-Guru
 
And we need to keep in mind that a proposal for the tax with exemptions for 401ks and pensions has much greater potential for passing. We're entering the danger zone.
 
i thought geitner said 2 weeks ago usa not interested in a transacton tax? If it were a big treat schwab,ameritrade,gs and 100's of others would be going wild. also the nations 300k stockbrokers would be killed with this tax. it would send 500k people to the unemployment line.
 
Quote from jnorty:

i thought geitner said 2 weeks ago usa not interested in a transacton tax? If it were a big treat schwab,ameritrade,gs and 100's of others would be going wild. also the nations 300k stockbrokers would be killed with this tax. it would send 500k people to the unemployment line.
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thats exactly why there is no real traction with this tax. the smart money knows this is counter productive and do more harm than good but reps like defazio and other burecrats need to put these ideas out there to see if anything makes sense. good rule of thumb watch the stocks like you mentioned and see if their prices start to go down quickly on huge volume. that would signal trouble 6 months ahead or so that these companies might not be able to meet the bottom line on their q's
 
Obama's administration has warned that job growth will continue to lag even as the economy recovers.

Members of the House Democratic Caucus also met Monday night to discuss ways of creating jobs. Among the ideas reportedly discussed were spending on infrastructure, aid to small businesses and extension of tax breaks.

...

Some of that dovetails with Democratic proposals in the House. Rep. John Larson, D-Conn., who heads the House Democratic Caucus, has called for infrastructure investments paid for with a transaction tax on stock and derivative trades.



http://www.marketwatch.com/story/groups-urge-washington-to-create-more-jobs-2009-11-17
 
While Geithner saying he doesnt support transaction taxes was a good thing, and him speaking on behalf of the administration at the g20, he does not make policy. I would still like to think what the administration thinks counts now, since we are in a one party government , so we shall see. So far this is the same stuff being printed and talked about, 3 weeks ago they talked about putting it in the transportation bill, CNBC is always late to the party. I did see somethin the other day saying this bill would exempt pensions, health and education savings, but made no mention of 401ks or IRA'S. I dont want it even considered in the house but if it must atleast we shall know pretty quick what the conensus is and hopefully they will shoot it down. We see the same names again and again, Jim Clyburn, Peter Defazio and Ed Perlmutter with tax, plus the 13 co sponsers of the original bill not much more then that supporting at this point. I think and it seems like they are pushing hard becuase if they do not get it done now it may nevver be done, now is their shot becuase of the crisis and turmoil.
 
http://thehill.com/blogs/blog-brief...liberal-groups-call-for-jobs-bill-and-new-tax

One of the similar artciles someone else posted this one discusses at the end the tax, and its the AFL CIO/NAACP pushing it. Saying it can be enacted in the 3 year of a 10 year period.

These initiatives will cost money, and we will need to tolerate higher deficits in the next few years. However, a jobs initiative can be coupled with a revenue stream, such as a financial transactions tax, that can take effect in the third year and more than pay for these efforts over a 10-year period
 
Here is a letter from Senator Kay Hagan, who is a democrat in the senate. She is against the bill in the house and would oppose it, but there is no bill in the senate. Here is the letter

November 17, 2009


Thank you for your message regarding the Let Wall Street Pay for Wall Street's Bailout Act. I appreciate hearing your thoughts on this important issue. I apologize for my delayed response.

On February 13, 2009 the Let Wall Street Pay for Wall Street's Bailout Act of 2009 (H.R. 1068) was introduced in the House of Representatives and referred to the Committee on Ways and Means. The bill would amend the Internal Revenue Code to require securities trading companies to pay a sufficient excise tax on a percentage of the value of their securities and commodities transactions in order to recoup the net cost of the Troubled Asset Relief Program (TARP). A similar bill has not been introduced in the Senate; however, I am opposed to the House version.

TARP was created under the Emergency Economic Stabilization Act, which was enacted in October 2008 at the peak of our financial crisis. The program was aimed at purchasing assets and equity from banks to strengthen them and encourage them to expand lending during a tightening credit squeeze. The funds provided under TARP were an investment, with the understanding that the American taxpayers will be repaid with interest. As a result of TARP and other targeted rescue program, banks are now recovering more quickly than the overall economy. Legislation such as H.R. 1068 could derail this progress. Furthermore, banks have already started to repay their TARP funds with interest.

In June, ten of nation's largest banks were able to demonstrate their return to stable profitability, and were cleared to repay a combined $68.3 billion in federal aid. They join 22 community banks that were previously allowed to repay about $1.8 billion in TARP funding. In addition to those repayments, so far, the Department of Treasury has collected about $6.85 billion in dividend and interest payments from recipients of the TARP funds. These repayments are an encouraging sign that we are on the road to economic recovery. I will continue to closely monitor TARP's progress in the upcoming months.
Again, thank you for contacting my office. It is truly an honor to represent North Carolina in the United States Senate, and I hope you will not hesitate to contact me in the future should you have any further questions or concerns.

Sincerely,



Kay R. Hagan

Please do not reply to this email. Instead, if you have further questions, please visit www.hagan.senate.gov and fill out my web form for your inquiry. Thank you.
 
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