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

[ksharmon]

Securities Tax Debate

http://www.statebillnews.com/2009/12/securities-tax-debate/

Harber said his history in the financial and technology markets makes him skeptical of how realistic it would be to exempt certain funds or transactions from the tax. He thinks it would make more sense to apply a simple tax to all of the security transactions, and that the complex exemption system could be a serious delay in the application of the tax.
“But the congressman I’m sure is concerned with the political fallout that would occur if he didn’t propose those exemptions,” he said.
SIFMA echoed Harber’s argument, saying that the legislation would be a compliance nightmare that would raise the costs for millions of mutual fund shareholders.
The United States had a transfer tax from 1914-1966. Harber believes that Perlmutter faces a tough challenge in brining that tax back. The bill stands a chance, however, if Wall Street continues to spark populist rage by paying itself lavish bonuses and not appearing grateful for the billions in bailout money they received, Harber said.
“I think it’s a fascinating issue that’s going to get really interesting,” he said.

 

[lurefo]

Quote from Mike805:

Hey Guys,

What can we do to get this a--hole Defazio out of office? Who is Defazio's opponent? Anyone know of any skeletons in his closet?

At this point, this is personal. I want to see to it that Defazio's livelihood is taken away...

Any suggestions?

Mike

Agree. Anyone?

 

[libertad]

Quote from lurefo:

Agree. Anyone?

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

There are a lot of non qualifieds to be added to the long list...

Harkin
Pelosi
Frank
Dodd


The list gets longer and longer....

DeFazio ....Harkin....and Pelosi would be a good start....


The closest experience that DeFazio has to the securities industry is having a tree farm.....


http://www.votesmart.org/bio.php?can_id=27037


Just another non qualified acting as if qualified.....

It is called US Economic Suicide.....

 

[GreenTraderTax]

Quick note. I am a little uncomfortable with no visible supportive reaction from Republicans on our No posture for a financial-transaction tax.

The GOP is adhering to the party line saying no tax increases in general, which covers this tax too, but is too weak in my view. We need more help from Republicans and please try to get it.

The GOP is cooking something here. In my view, their game plan is to run on simple campaign messages in the 2010 mid terms (right around the corner planning-wise). The Wall Street big banks and too-big-to-fail argument was wrong in their view, and they voted against TARP and stimulus for the most part. They still think its probably not working. That is why Secretary Geithner is rushing to shut down TARP with success. The Republicans are currying (Tea Party) populist anger towards Wall Street and bailouts, and they want to run opposition candidates on these simple points alone. They won’t be seen as riding in to save Wall Street’s hide. Democrats rule the money centers of NY and IL at the moment.

So we are on our own here and need the centrist money-center Democrats to rein in the progressive (outside of the money center) Democrats. That’s why Secretary Geithner, Larry Summers, President Obama (D-IL), Charles Rangel (D-NY and Ways and Means) and Chris Dodd (D-CT hedge land) are our only hope. So play nice with the Democrats too or we could be dragged into the anti-Wall Street furor stoked by the GOP too. I do want to call out some Republicans over this as well and not let them off the hook here.

In my reply to the NY Post over the weekend, my last post here, I did deflect some populist anger to Wall Street bankers and big bonus recipients and mentioned reasonable stock bonuses over cash. OldTrader called me out on it and I agree with OldTrader. I have been defending Wall Street too all along. But this anger is for real and the GOP is making it their party line. So we need a little separation from small business Main Street traders and big bonus Wall Street recipients. Don’t worry about them, they have their lobbyists and they will take care of themselves.

 

[leela]

Quote from GreenTraderTax:

Quick note. I am a little uncomfortable with no visible supportive reaction from Republicans on our No posture for a financial-transaction tax.

The GOP is adhering to the party line saying no tax increases in general, which covers this tax too, but is too weak in my view. We need more help from Republicans and please try to get it.

The GOP is cooking something here. In my view, their game plan is to run on simple campaign messages in the 2010 mid terms (right around the corner planning-wise). The Wall Street big banks and too-big-to-fail argument was wrong in their view, and they voted against TARP and stimulus for the most part. They still think its probably not working. That is why Secretary Geithner is rushing to shut down TARP with success. The Republicans are currying (Tea Party) populist anger towards Wall Street and bailouts, and they want to run opposition candidates on these simple points alone. They won’t be seen as riding in to save Wall Street’s hide. Democrats rule the money centers of NY and IL at the moment.

So we are on our own here and need the centrist money-center Democrats to rein in the progressive (outside of the money center) Democrats. That’s why Secretary Geithner, Larry Summers, President Obama (D-IL), Charles Rangel (D-NY and Ways and Means) and Chris Dodd (D-CT hedge land) are our only hope. So play nice with the Democrats too or we could be dragged into the anti-Wall Street furor stoked by the GOP too. I do want to call out some Republicans over this as well and not let them off the hook here.

In my reply to the NY Post over the weekend, my last post here, I did deflect some populist anger to Wall Street bankers and big bonus recipients and mentioned reasonable stock bonuses over cash. OldTrader called me out on it and I agree with OldTrader. I have been defending Wall Street too all along. But this anger is for real and the GOP is making it their party line. So we need a little separation from small business Main Street traders and big bonus Wall Street recipients. Don’t worry about them, they have their lobbyists and they will take care of themselves.

You are right. It may be a good idea for those with Republican/Independent reps in the Senate or House to email and call to ask them to say something.

Why are the Republics silent?

Hi GreenTraderTax, you are very well-informed onthis. Would you care to write to the New York Times (that proposed the tax earlier this year) and other main stream media about this insane tax.

Traders & investors already pay capital gains tax when they make money. Does the DeFazio want to tax when investors lose money too?

 

[listedguru]

Quote from GreenTraderTax:

Quick note. I am a little uncomfortable with no visible supportive reaction from Republicans on our No posture for a financial-transaction tax.

The GOP is adhering to the party line saying no tax increases in general, which covers this tax too, but is too weak in my view. We need more help from Republicans and please try to get it.

The GOP is cooking something here. In my view, their game plan is to run on simple campaign messages in the 2010 mid terms (right around the corner planning-wise). The Wall Street big banks and too-big-to-fail argument was wrong in their view, and they voted against TARP and stimulus for the most part. They still think its probably not working. That is why Secretary Geithner is rushing to shut down TARP with success. The Republicans are currying (Tea Party) populist anger towards Wall Street and bailouts, and they want to run opposition candidates on these simple points alone. They won’t be seen as riding in to save Wall Street’s hide. Democrats rule the money centers of NY and IL at the moment.

So we are on our own here and need the centrist money-center Democrats to rein in the progressive (outside of the money center) Democrats. That’s why Secretary Geithner, Larry Summers, President Obama (D-IL), Charles Rangel (D-NY and Ways and Means) and Chris Dodd (D-CT hedge land) are our only hope. So play nice with the Democrats too or we could be dragged into the anti-Wall Street furor stoked by the GOP too. I do want to call out some Republicans over this as well and not let them off the hook here.

In my reply to the NY Post over the weekend, my last post here, I did deflect some populist anger to Wall Street bankers and big bonus recipients and mentioned reasonable stock bonuses over cash. OldTrader called me out on it and I agree with OldTrader. I have been defending Wall Street too all along. But this anger is for real and the GOP is making it their party line. So we need a little separation from small business Main Street traders and big bonus Wall Street recipients. Don’t worry about them, they have their lobbyists and they will take care of themselves.

I think the Republicans will come against this once it gets introduced in the Senate (maybe this week). I think they've been busy trying to tackle the health care issue. I have a feeling there's been a lot of work going on behind the scenes in regards to crushing this tax... I predict it never even comes up for vote.

-Guru

 

[leela]

The other consequence of the transaction tax is that the government is likely to lose some of capital gains tax that traders are currently paying. Small traders will be forced out of business.

 

[JOSEF]

Quote from leela:

The other consequence of the transaction tax is that the government is likely to lose some of capital gains tax that traders are currently paying. Small traders will be forced out of business.

Yup.

And the government will also lose income taxes from all the jobs that are bound to be lost in the retail trade sector from firms such as Schwab, Etrade etc.

And with the increases bid ask spreads due to lower volume, it will be harder for anybody to retire with their IRA's/401ks as their fees are bound to go up.

As I read about Senator Harkin making his speech for this tax, he made it sound like it was free money with no harm since Wall Street could afford it anyway. The man is just grossly misinformed with his blanket statements.

 

[pev]

The fact that these f**ken democrats want to fund more billions of FAILED stimulus spending by taxing trades is just f**ken nauseating. This is insane!

Spread the word and put up a fight. We need to remove (vote) as many of these bastards out of office in 2010!

 

[loufah]

Quote from tomahawk:

We have to remember that this tax discriminates not against short-term trading per se, but against ALL small capital gains AND LOSSES across the board.

Say I invested a 100k IRA in SPY or an index mutual fund in mid-2003 ... 1k shares of SPY @ 100.00. I hold it like a good little investor all the way up; then when things turn sour, like many other investors not wanting to see their ENTIRE nest egg melt away, I move to cash in late 2008, just above my entry, @ 100.25.

My capital gain is $250. Tax: .25% X $100250 = $250.63, or 100% of my Cap gain. Of course I also had to pay .25% or $250 on the way in.

IRAs and mutual funds are exempt from the tax. Traditional buy-and-hold investors will not be taxed.