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1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Quote from listedguru:
House Democrats float new jobs plan:
"As President Obamaâs prepares for Thursdayâs job summit, House Democratic leaders are floating the idea of adding job-creating measures to a must-pass omnibus spending bill, and paying for the projects with repaid TARP funds."
http://www.politico.com/news/stories/1209/30145.html
This sounds like a step in the right direction as it says the projects would be paid for with repaid TARP funds. There is no mention of a transaction tax (hmmm)...
-Guru
The only choice Democrats have to get this jobs bill passed right away is if they pay for it with TARP funds. If they try placing a transaction tax into the bill, they know the Republicans, as well as some Democrats, will throw up all sorts of road blocks which would delay this bill indefinitely. The liberal Democrats want this bill passed immediately, so the only choice they have is using TARP funds to pay for it.
Quote from listedguru:
House Democrats float new jobs plan:
"As President Obamaâs prepares for Thursdayâs job summit, House Democratic leaders are floating the idea of adding job-creating measures to a must-pass omnibus spending bill, and paying for the projects with repaid TARP funds."
http://www.politico.com/news/stories/1209/30145.html
This sounds like a step in the right direction as it says the projects would be paid for with repaid TARP funds. There is no mention of a transaction tax (hmmm)...
-Guru
Actually I believe it is a problem, but not now. One of the provisions of TARP was that if there were any shortfalls in the Treasury recouping and paying down the TARP funds a tax could be imposed on WS to cover those losses, if I read the info correctly last fall. Since then, we have used TARP for the autos and I believe some real estate and now we are going to use it for jobs. Come yr 5, how are we supposed to retire this debt if it was sunk into all these black hole programs? I think it's not a matter of "if" but "when".
Quote from jksn922:
Actually, Geithner is scheduled to be at the summit. This was reported on Fox Business News earlier in the day.
He has no opinion of his own that Obama doesn't already know about. Window dressing, his views are already discounted. The point is there will be nobody from the *private sector* in attendance who can voice opposition to this idiocy.
Quote from loufah:
And that is the point. The sponsors of the bill ostensibly want people to buy and hold rather than do short-term speculation, in order to lend stability to the markets. Other supporters like Krugman are even more specific: they hate high frequency traders who don't do anything socially redeeming and want the practice curtailed.
I'm one of the people that Krugman hates; I get out of an ES trade after a .20% move, and don't contribute anything socially redeeming to the market. The bill will kill my livelihood but has a chance of improving the rest of the country. It was a nice ride while it lasted.
How does depleting liquidity from the market lend to more stability? How does it improve the rest of the country?
Answer: it doesn't.
Quote from OldTrader:
Had you read this thread, you might have learned that Schwab spoke about this tax at a recent conference. Schwab is very concerned about the impact of this tax on their business, as they should be. In fact, I wrote them an email pointing out their paradox that they advertise on Erin Burnett's show, who is speaking well of the tax, and suggesting that they withdraw their ads.
That said, yeah, it's possible that Schwab would survive. But "survive" may not mean what YOU think it means. Clearly their volume is going to go down. Short term trading likely encompassing well in excess of 70% of their volume. Volume down, revenue down, earnings negative. The next step is Schwab lays off employees. Did you ever see some of the early Schwab offices? The look like skeletons of the current Schwab office. Lots of employees would lose their jobs. Schwab cuts back on services, has to vacate their real estate, etc etc etc etc.
And then comes the commission increases. So you think the tax is alot, PLUS the increases spread, now add in that increased commission. You'll need a major move just to get even.
You remind me of some of the Obama supporters in the last election. No matter what he said, or the conclusions you could draw, people were for him, the "change you can believe in" type of thing. Now I wonder what some of the supporters have to say eh? Either way, this is the real world, once the tax is in effect, it's too late. Changes will take place that will help to destroy what little is left of this country. Guys like you need to take your head out of your ass.
OldTrader
Good heaven. That Burnett really is a contemptible hack. I really don't understand why so many financial firms keep 50 flat screen TVs running with CNBC on in the background.
Quote from jksn922:
Their proposing this internationally on "U.S. Citizens" that trade from other countries. They can't touch citizens of other countries that don't have this tax. This is why I've been exploring the whole citizenship thing with Canada, as they wouldn't be able to impose this tax on a U.S. citizen that was able to obtain citizenship in another country, and they traded from there.
Wait, you're a US citizen looking to get dual citizenship with some other country, presumably one that you have no natural born claim to? I mean, that's great, but wow, is this what America has come to? Americans who are capitalists are looking to get the hell out of here? This now ranks up there with the other thread where some dude was saying that he is panning for gold.
Wow, we are so badly screwed in this country.
Quote from DisciplinedHedg:
At this point, I don't think anyone cares about which brokers would survive or do better than the rest.
Bottom line is that this transaction tax is bad for retail trading and beyond. And it would hurt all brokerages across the board. But more importantly, hurt traders.
There are dozens of boutique futures brokers. They would have to fold almost instantly.
Quote from rsikit:
Someone did post which is true the IRS can come after you fro 10 years after the fact to collect taxes, its a moot point, most almost all people are not going to denoucne citizenship, establish residence in another country and become a citizen, it takes years
The IRS can go after an ex-citizen for 10 years after they denounced their citizenship? WTF? Wouldn't that depend highly on the laws and opinions of the person's new country? It's one thing if you owed taxes for years prior to your having denounced your citizenship, but for the period after? On what basis?
In any event, who would trade their citizenship from this great country for this? Better to stay here and vote these tools out of office.