The daytrading business will be injured. But discount brokers like Schwab will survive. My first stock purchase was $5K worth of SUNW in 1987. From Schwab. The commission was around 2%. I held onto it through 5 splits. I'm not sure non-daytraders are buying GOOG right now, but suppose a mom and pop trader had bought GOOG at $100. They would not sell at $102; they'd wait until $200 or $300. .25% means little in this case.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
EU official says "Tobin Tax" not right way to go
http://www.forexyard.com/en/reuters...0556Z_01_GEE5B11S2_RTRIDST_0_EU-FINANCIAL-TAX
A "Tobin" style tax on financial transactions is not the best way to raise cash for bank bailouts, a senior official from the European Union's executive body said on Wednesday.
The G20 group of leading countries asked the International Monetary Fund at a meeting in Scotland last month to come up with options by April for a possible transaction tax, "insurance" levy or resolution fund paid for by banks.
It would help refund taxpayers for huge bailouts and pay for future rescues.
The European Commission, which participates in the G20, told a European Parliament hearing on transaction taxes it was not working on such a proposal, there were doubts about its impact, and several issues need clarifying.
"It leads us to the clear conclusion that such as tax is not the right instrument. It's not a secure instrument," said Alexander Wiedow, a director in the commission's tax unit.
http://www.forexyard.com/en/reuters...0556Z_01_GEE5B11S2_RTRIDST_0_EU-FINANCIAL-TAX
A "Tobin" style tax on financial transactions is not the best way to raise cash for bank bailouts, a senior official from the European Union's executive body said on Wednesday.
The G20 group of leading countries asked the International Monetary Fund at a meeting in Scotland last month to come up with options by April for a possible transaction tax, "insurance" levy or resolution fund paid for by banks.
It would help refund taxpayers for huge bailouts and pay for future rescues.
The European Commission, which participates in the G20, told a European Parliament hearing on transaction taxes it was not working on such a proposal, there were doubts about its impact, and several issues need clarifying.
"It leads us to the clear conclusion that such as tax is not the right instrument. It's not a secure instrument," said Alexander Wiedow, a director in the commission's tax unit.
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.
It is not possible. If it were possible, other nations would have already done it. What could have prevented them from doing so!? It is simply not logical to pay the US transaction taxes when you are trading foreign securities in another land. US jurisdiction is only limit to its borders. Beyond its borders, US is powerless. Just to get US fugitives captive from other nations, it may takes US many years if not forever to do it. That is why Pelosi and others wants international cooperation on transaction taxes.
Quote from zdreg:
the tax will be collected by the exchange or the ecn. it has nothing to do where u come from.
Zdreg is right for those of you thinking about denouncing your citizenship, which is very hard. This is not a tax you pay at the end of the year but at the ecn level or exchange, there will be no escaping this one if enacted.
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.
You are right I just read this on the Cato Institutes site:
The No. 4 Democrat in the House, Representative John Larson, said his proposal to impose a 0.25 percent tax on over-the-counter derivatives transactions would apply internationally. âPart of our proposal would include that it would be international,â Larson told Reuters after meeting with other lawmakers about the jobs package. Democratic Representative Peter DeFazio said his separate proposal, which would tax a wider array of trading activity, would cover all U.S. corporations and individuals no matter where their trades took place.
http://www.cato-at-liberty.org/2009/11/23/pelosi-eyeing-global-tax-on-financial-transactions/
Now back to trading I have wasted to much time on this shit this week.
Quote from hoffmanw:
It is not possible. If it were possible, other nations would have already done it. What could have prevented them from doing so!? It is simply not logical to pay the US transaction taxes when you are trading foreign securities in another land. US jurisdiction is only limit to its borders. Beyond its borders, US is powerless. Just to get US fugitives captive from other nations, it may takes US many years if not forever to do it.
the exchange and ecn in the US will charge the broker.
the broker will pass on the cost to the customer. it doesn't make a difference what your nationality is.
Quote from Anaconda:
Get it through your thick skulls. Market Makers would not be subject to such tax. The liquidity will still be there. The market making entities will have some fat profit margins to enjoy.
The market will simply resemble one that existed 2-3 decades ago, where 90%+ of the people could not trade on a short timeframe due to lack of technology and high commissions.
Please stop acting like most of the armies of daytraders & HFT hedge funds would be missed the slightest bit if they were gone. Most of the volume nowdays noise. Seriously, think back to 1980s when the volumes were a fraction of what they are today. Trading was still quite active, with plenty of speculators to provide price discovery, along with mutual funds, pensions funds and small retail guys doing some swing trading & investing. Companies still went IPO.
If this tax actually went through without any exemptions, you will have much more serious issues to worry about.
Anaconda, you are correct. No way market makers (or probably anyone who can afford a seat on the exchange) get hit with this tax. Therefore, the whole "Wall Street needs to pay its own way because the taxpayers bailed them out" is ridiculous. Once again, it will be hardworking taxpayers, trying to manage their own finances, who will be stuck paying this bill. There are getting to be too many voices out in the media who seem to be getting on this bandwagon. We all should be bombarding these entities (in addition to our congressional reps)...How can Cramer, a self-proclaimed champion of empowered investors, not be railing against something like this. People like this need to be called out. BTW, this thread has been a very good source of information, and people like Loufah, while entitled to express their opinions, should probably be ignored. As much as you may disagree with their opinions, it is pointless (and creates multitudes of add'l pages of bickering to wade through) to argue, because it seems as though some here just want to argue for the sake of arguing.
Send letters to your congressional reps, soliciting their opinions regarding these tax proposals. We should not ignore this, as too many are jumping on the bandwagon, and spreading all kinds of disinformation about the massive funds that will be generated by this "harmless" tax.
Quote from hoffmanw:
It is not possible. If it were possible, other nations would have already done it. What could have prevented them from doing so!? It is simply not logical to pay the US transaction taxes when you are trading foreign securities in another land. US jurisdiction is only limit to its borders. Beyond its borders, US is powerless. Just to get US fugitives captive from other nations, it may takes US many years if not forever to do it. That is why Pelosi and others wants international cooperation on transaction taxes.
Just as we can not spread trade or trade cfds overseas, they can make it the same way for overseas brokerages.
Quote from loufah:
The daytrading business will be injured. But discount brokers like Schwab will survive. My first stock purchase was $5K worth of SUNW in 1987. From Schwab. The commission was around 2%. I held onto it through 5 splits. I'm not sure non-daytraders are buying GOOG right now, but suppose a mom and pop trader had bought GOOG at $100. They would not sell at $102; they'd wait until $200 or $300. .25% means little in this case.
I think you are badly mistaken.
You cannot compare what you paid 22 years ago with the cost of trading today. The trading landscape has changed completely.
If we assume the average retail trade is for $8,000, then a 0.25% tax would equal $20. Current commission on that trade is $8.95 for traders, and it would increase to $28.95. More than triple.
If tomorrow Schwab raised their commissions to $28.95 per trade, do you think it would mean little to retail traders? Do you think it would affect Schwab only a little?
Quote from hoffmanw:
US jurisdiction is only limit to its borders. Beyond its borders, US is powerless. Just to get US fugitives captive from other nations, it may takes US many years if not forever to do it. [/B]
What about those UBS clients that had offshore account info. provided to the I.R.S. and Department of Justice? They are now in mega trouble for skirting their tax obligations made on foreign securities in another land. I suppose it all depends on whether that country decides to cooperate with the U.S. Gov't. or not. In the UBS case, Switzerland decided to cooperate under threat from the Adolph Obama administration.