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

[Stok]

Quote from SNBthetrue:

not bad... even good for human traders... However I can't imagine the disaster for the algo's operator... in themselves algos don't suffer ( electronic suffering ? ) they only wait...

What people need to understand is that the tax is really double all that. If you buy 1 ES with a nominal value of $55,000, the buyer pays the .002 and the seller pays the .002, in which for only $55,000 exchanged, the gubernment is getting now .004. Same with stocks. Gubernment gets 0.50 now.

This is exactly why the volume will drop 70%...no doubt in my mind..and if this does get passed, you can expect a decline in the markets of 30%+, and the bankruptcy of many brokers.

This all needs to be pointed out and talked about!!

 

[wjk]

Quote from Stok:

What people need to understand is that the tax is really double all that. If you buy 1 ES with a nominal value of $55,000, the buyer pays the .002 and the seller pays the .002, in which for only $55,000 exchanged, the gubernment is getting now .004. Same with stocks. Gubernment gets 0.50 now.

Shifty bastards. So that's why Defazio always has a shit eating grin on his mug.

 

[rsikit]

Quote from quicktrader12:

Good point. You can post comments/ideas on blog. There is still time.

http://blog.t3live.com/

I just commented on Scotts blog

 

[Rohok]

I am appalled by this. Don´t know what to say. I mean, it just doesn´t make any sense whatsoever.

 

[Atlantic]

somebody should calculate how much tax is being payed RIGHT NOW by: traders, brokers, exchanges, etc.

and how much of that would be LOST due to any sort of tax which would reduce trading/liquidity.

 

[Rohok]

Quote from gerry875:

somebody should calculate how much tax is being payed RIGHT NOW by: traders, brokers, exchanges, etc.

and how much of that would be LOST due to any sort of tax which would reduce trading/liquidity.

That is so true.

 

[Stok]

Quote from gerry875:

somebody should calculate how much tax is being payed RIGHT NOW by: traders, brokers, exchanges, etc.

and how much of that would be LOST due to any sort of tax which would reduce trading/liquidity.

Yes...I posted earlier about this...a study needs to be done to show how this would be revenue net negative!! For ex., are they computing the $170B in tax revenue based on current market volume?? HA! Volume will go down 70%...so they need to readjust the expected tax revenue down 50-70%...then compare that to all the brokers, individual traders, hedge funds, CTAs, prop firms, arb traders, program traders, software companies, etc... that will go out of business and how much the volume DECLINE is missed out revenue as well...then compare that to this $170B crap.

IT WILL BE REVENUE NET NEGATIVE AND THERE HAS NEVER BEEN A TAX INCREASE IN HISTORY THAT WAS REVENUE POSITIVE BECAUSE OF THE DEMAND DECREASE.

When will the gubernments of the world f*cking realize this??

WE NEED REAGAN BACK, GOD BLESS HIS SOUL!!

 

[tomahawk]

Quote from gerry875:

somebody should calculate how much tax is being payed RIGHT NOW by: traders, brokers, exchanges, etc.

and how much of that would be LOST due to any sort of tax which would reduce trading/liquidity.

Exactly.

I think they ought to make the tax even higher to cover jobs programs for all the newly unemployed people from the finance industry.

 

[libertad]

This ploy has one purpose....

Populist getting back at Wall Street ....

That's it....

..................................

The major points being....

Voting for such a tax would be voting for a 30% to 70% decline
in the indexes....

Voting for a such a tax....would be a vote to move the Exchanges
away from the US.....along with its current tax base....basically
eliminating the US financial centers.....

Voting for such a tax would mean that a stock would have to move 10% before one could break even for most stocks....or the
same as a 4 year total income on a govt. bond....

........................................................................

For the populists to win.....this should probably be more like a "tax the wealthy war tax"....ie 2% of year end profits....for hedge funds over $500 million....

This would be a win for the populists.....

The populists have to fell good about knowingly hurting WS.....

We scored one against the big boys....

That's it....

 

[seasideheights]

This is another good one from Scott's blog replies that questions whether it should even be called a tax. The new name there is nice. Also the penalty theme with a touch of middle class theme.




"It's not a tax. It's a PARTICIPATION FEE. They want to fine you for participating in the markets. It has nothing to do with what you earn on a trade. Even if you LOSE MONEY on an investment, you still get penalized for investing in the USA stock market."