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

[MrPowerBallad]

Quote from drukes1234:

Would it also be 0.02% for stock transactions? Or nothing for stock transactions at all?I could live with 0.02%

From the article:

"The measure would be based on legislation DeFazio proposed in the House that would apply a 0.25 percent tax to stock transactions in excess of $100,000 and a 0.02 percent levy on derivatives including futures, options, swaps, and credit default swaps."

 

[rsikit]

Quote from jksn922:

That whole 100k theory is laughable. If I wanted to trade one 30 year bond contract, is has a value of 100k. So, after I make that one trade with one contract, I'm already at my limit for the year, and the rest is subject to a transaction tax.

It is laugable to us as traders, but it the investors they are trying to compromise with

 

[drukes1234]

Quote from MrPowerBallad:

From the article:

"The measure would be based on legislation DeFazio proposed in the House that would apply a 0.25 percent tax to stock transactions in excess of $100,000 and a 0.02 percent levy on derivatives including futures, options, swaps, and credit default swaps."

The article doesn't make it clear if it's per transaction or per year.

 

[TraDaToR]

I could live with 0.02% too but it would cut my yearly gains almost by half( futures here ). I would continue to trade while focusing on non-taxed instruments for new strategies.

 

[Math_Wiz]

Quote from rsikit:

Its a 100k total for the year

Do you have a link?

+-*/ Math_Wiz

 

[rsikit]

Quote from drukes1234:

The article doesn't make it clear if it's per transaction or per year.

In all the other articles about this bill it was per year, but the .02% is interesting becuase it used to be in the bill then it was changed to or said out loud that it was .25% on all transactions. We will not know until the bill comes out. Whle some of us can live with .02% on certain things we trade. It adds 40 bucks to the 100k of each trade. It certainly stinks, and it depends how you trade if you can make money or not. I personally trade fx and it would add to the spreads, but whatever we think , I believe once enacted at whatever level we think we can live with it has the ability to be tweaked for the worse and raised. So make it clear that there is no tax we can live with!

 

[jksn922]

Quote from MrPowerBallad:

It looks like this article has been updated with some important info -- suggest everyone re-read it. Some new key points:
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and a 0.02 percent levy on derivatives including futures, options, swaps, and credit default swaps.
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Support for Tax

Harkin and DeFazio said the proposed new levy is backed by more than 200 economists, the AFL-CIO labor union, and business leaders including Warren Buffett and Vanguard Group Inc. founder John C. Bogle, now president of Bogle Financial Markets Research.

“I endorse the Harkin-DeFazio bill in principle,” Bogle said in an e-mail released by the lawmakers. He urged “careful study” to find appropriate tax rates.

Business groups including the Business Roundtable oppose the bill.

“Nearly every American would be impacted by a new transaction tax, no matter how small it is,” said Steve Bartlett, president and chief executive officer of the group. “It would reduce the investment accounts for all Americans and erect a roadblock to capital flowing into the system, thereby limiting job growth and productivity.”
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Congressional Approval

Clint Stretch, a tax policy specialist at the Deloitte Tax LLC consulting firm, questioned whether the proposal will win approval.

“The current state of the economy and market does not suggest that Congress will want to risk having an adverse impact on markets,” he said.

As for the 0.02% tax on derivatives, as long as this was per transaction, and not based on the number of contracts in that transaction, then I could live with that. But still, this tax is a horrible idea, and needs to be fought tooth and nail, because if they did enact a tax, it would do nothing but rise more and more over time.

 

[rsikit]

Quote from Math_Wiz:

Do you have a link?

+-*/ Math_Wiz

http://money.cnn.com/2009/12/02/news/economy/financial_transaction_tax/

Here is one link and just look for articles there are plenty that state it. We shall see what the bill says when it is introduced today, we can look for it soon I hope.

 

[TraDaToR]

Nope... Drukes and other stock traders won't even make a trade with 0.25%. They are really crazy with stocks.

Even as a futures trader, I would trade just make a minimal income for a moment and switch everything on non taxed exchanges when I get effective strats.

 

[MrPowerBallad]

Quote from jksn922:

As for the 0.02% tax on derivatives, as long as this was per transaction, and not based on the number of contracts in that transaction, then I could live with that.

It would be assessed on the total value of the transaction (more contracts per transaction = more tax).