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

Quote from JOSEF:

Then why did Sweden's seven year attempt with transaction taxes fail? Volume moved to markets abroad...
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It's not about volume. It's about profit & control. Core volume comes from mutual funds & pensions and core profits for short term trading comes from the same animals. They are not going anywhere with this tax.

Additionally, comparing Sweden's markets to USA's markets is quite a stretch.
 
This is from a friend this morning

"Interactive Brokers ramped up it's retail trading business by lowering the cost to buy and sell 200 shares of GOOG to $2. Ameritrade charges $14, and Schwab charges $10. The transaction tax on that trade is $580. It is clear that the retail trading business will be eliminated with such a tax."

Lost jobs, lost businesses, lost revenue.
 
Quote from Midas:

Not so, when is the last time you paid sales tax to the US while traveling abroad? Or any tax other than on the income you make for that matter?

As for socialism, Canada is ahead of the US in the race to that end. New Zealand would be a better option for you in that respect.

BTW, you have more things to be ungrateful for in the US than most people in the world/could dream of being grateful for.

Its not the country thats at fault its those who want to take it in the wrong direction.
Don't forget that.
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You don't think the IRS would be especially watchful in monitoring U.S. citizens abroad that trade and do not pay a transaction tax??? Just ask UBS customers about that one. lol The UBS case doesn't involve transaction taxes, but does involve taxes on earnings made, and money hidden in offshore accounts. Now, if they were legal citizens of that country, the IRS wouldn't have been able to touch them.
Since a tran. tax would involve such huge amounts to money, you can bet the I.R.S. would be all over it. I highly doubt they would devote the resources at going after U.S. citizens who didn't pay a sales tax on things while traveling/vacationing abroad. lol
As for socialism, Canada is leading the U.S. in that area, especially as far as health care is concerned. But wait, the U.S. will be catching up very soon, especially once their socialist, government option, universal, rationed health care bill passes.
 
Quote from jksn922:

You don't think the IRS would be especially watchful in monitoring U.S. citizens abroad that trade and do not pay a transaction tax??? Just ask UBS customers about that one. lol The UBS case doesn't involve transaction taxes, but does involve taxes on earnings made, and money hidden in offshore accounts. Now, if they were legal citizens of that country, the IRS wouldn't have been able to touch them.
Since a tran. tax would involve such huge amounts to money, you can bet the I.R.S. would be all over it. I highly doubt they would devote the resources at going after U.S. citizens who didn't pay a sales tax on things while traveling/vacationing abroad. lol
As for socialism, Canada is leading the U.S. in that area, especially as far as health care is concerned. But wait, the U.S. will be catching up very soon, especially once their socialist, government option, universal, rationed health care bill passes.
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The bill states the trading facility at the of the trade will pay the tax, so basically you will be paying it per trade at the time you trade. All they have to do is make a deal has banks and brokerages overseas charge any us client this tax.
 
Quote from rsikit:

The bill states the trading facility at the of the trade will pay the tax, so basically you will be paying it per trade at the time you trade. All they have to do is make a deal has banks and brokerages overseas charge any us client this tax.
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Exactly!!! Which is why obtaining citizenship in a non-trader tax country is important, hence you wouldn't be charged that tax.
 
I would like to remind everyone that there are over 10,000 hedge funds registered in the Cayman Islands. That wasn't by accident and if a transaction tax is levied in the US, these hedge funds will avoid the tax. Newedge just announced that it is aggressively expanding in Asia and several Asian nations have a vested interest in growing their own capital markets. Russia along with India has shot down the idea of a tobin tax. Traders will always be able to trade profitably somewhere in the world. Traders earning millions every year will not just sit by and let their livelihoods be destroyed.
 
Quote from jksn922:

Exactly!!! Which is why obtaining citizenship in a non-trader tax country is important, hence you wouldn't be charged that tax.
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Until your new country in turn passes its own tax, then I guess it's . . . . off to the next country? You'd always be running from this tax.

Don't forget that the IRS has provisions that say if you become an expat for tax purposes, then you still are subject to tax for 10 years even after you've renounced citizenship (assuming you don't take up residency in some 3rd world country). You can also assume that if this tax is passed, the IRS will could make those provisions even more stringent in anticipation of people leaving for tax purposes.
 
Quote from MrPowerBallad:

Until your new country in turn passes its own tax, then I guess it's . . . . off to the next country? You'd always be running from this tax.

Don't forget that the IRS has provisions that say if you become an expat for tax purposes, then you still are subject to tax for 10 years even after you've renounced citizenship (assuming you don't take up residency in some 3rd world country). You can also assume that if this tax is passed, the IRS will could make those provisions even more stringent in anticipation of people leaving for tax purposes.
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The I.R.S. would have to be able to prove that, which they couldn't. The I.R.S./U.S. Government cannot dictate to anyone where to live, or which country to establish citizenship with. I could simply say that I decided to move to Canada and become a citizen to be with my girlfriend, as we were expected to get married. Then if we ended up breaking up, I decided to stay in Canada. They have no way whatsoever to prove my intent at doing this was to simply avoid the transaction tax. The burden of proof would be on them! Also, if I were to start the Canadian citizenship process right now, and not wait until after a trader tax was passed, it would make the U.S. Government's/I.R.S. case even harder to prove. Since the process of becoming a Canadian citizen takes from 24-36 months, it would be a great idea to start that process right now. If the U.S. passes this tax, it would take 2-3 years before it would take affect, which would be around the same time my Canadian citizenship process would be completed. Talk about wonderful timing. :D

Again, if this tax were passed internationally, all of this would be moot.
 
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