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

Quote from seasideheights:

This article demonstrates the inadvertent consequences of speaking out against the tax in places other than existing press articles or directly to those in Washington DC.

TradeKing puts out a Press Release for everyone, including the non-trading general public, to read which discusses the transaction tax idea.

Next, we have an entire article about the tax on Seeking Alpha due to the fact that the author saw the Trade King PR that discussed the tax which he sourced in the very first sentence of his article.

Helping the volume of this tax increase DOES NOT help our cause. This tax is serious. It could destroy many, many livelihoods. The more talk there is about the tax in this anti Wall Street environment, the harder our job will be in defending our livelihoods.

We need to ensure that the volume is turned down to zero.

Focussing on the members of the committees that have the defazio bill, the co-sponsors of the defazio bill, and the senators related to the upcoming Harkin bill is where we should be placing our focus.

Many brokers are involved in direct, quiet communication with Washington DC. I know. I've talked to them. You'd be surprised how many are lurking in this thread. They ARE working on your behalf. Direct communication is essential.

Let's work at getting this tax OUT of the public consciousness. Taking actions that inadvertently help spread the word assists the pro-tax crowd, not us.
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Astute advice.

On IMF proposal, consider the divide and conquer theory. G-20 members have electoral responsibility to maintain their national autonomy. Remind IMF and others - representatives must not be bullied into legally binding controls over domestic internal economic rights. Raise wisdom of non-surrendering present and future national taxation regimes to any outside agency (UN).

Politicians already under pressure for over-taxing. Public outrage for unauthorised legal commitment to deliver local tax money to powerful, global collection center --- (theres already widespread international public disquiet on 'globalisation' ). Adverse public perception of IMF/UN/G-20 interventionist measures. High potential for inter-national division. Theres two sides --- revenue projection doubts, and political cost. I've read several pro-tax opinions suggesting off-shore flight is easily counteracted through sophisticated computer tracking measures.
The Copenhagen exercise showed difficulties in achieving inter-national cooperation:

BUT on this subject, current harmonious G-20 leaderships could be less divided - its (yet to be proven) revenue raising potential way too attractive. Clear potential for subsequent ruined (angry) relationships, infighting, longterm restraints on internal fiscal (and party-political policies) could be a persuasive element in the logic behind the IMF "NO" case.
 
Quote from TraDaToR:

Perhaps it has been posted before but I can't recall. There is a new mailing address on the IMF website for the TT:

"We request that comments be submitted by February 1, 2010, to allow their consideration for the study. All contributions should be sent by February 1, 2010 to IMFConsultation@imf.org"

they will make comments viewable in January to stimulate the debate. We want everybody on this site to send at least on message to the IMF.

http://www.imf.org/external/np/exr/consult/2009/index.htm

In January, when debating will be possible, we want at least 5 messages against it for one message for it.

Post this link on every trading forum available.
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I think this information should be in the first post...
 
Quote from hoffmanw:

Not possible. It is impossible to enforce US laws on foreign brokerage firms in other countries unless other countries cooperate. Of course, if you trade US securities oversea through foreign brokerage firms, then you you have to pay US TT. Beyond US borders, US are pretty powerless to do anything.
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Other countries currently cooperate, even Switzerland. Witness the recent UBS suit/settlement. The US govt will undoubtedly find out who has foreign accounts.
 
Quote from traderjb:

You know, loufah, if you really believing in paying a transaction tax. Then why not put your money where your mouth is, and order your broker to withdraw a set amount of cash each day or time when you make a trade (you do some sort of trading right, or at least passive investing?). Have your broker automatically make a check out to the government as a donation.
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I don't know why people need to make personal accusations, but... I've been actively trading for 10 years, and would not appreciate a trader tax, especially one of this magnitude.
 
Quote from loufah:

Other countries currently cooperate, even Switzerland. Witness the recent UBS suit/settlement. The US govt will undoubtedly find out who has foreign accounts.
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The fact is not all countries will cooperate with US. There are 195 countries in the world. Only approx. 100 countries cooperate with US on the US extradition law, and it wins the most cooperation internationally. Maybe the US transaction law at best will get 30 countries to cooperate. To get all countries to cooperate, US has to launch its military machine to conquer and subjugate uncooperative countries.
 
Quote from loufah:

Other countries currently cooperate, even Switzerland. Witness the recent UBS suit/settlement. The US govt will undoubtedly find out who has foreign accounts.
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Only this year, US got the cooperation from Switzerland on investigating oversea tax-dodgers. I have never heard US gets cooperation from other nations over this matter. Last couple months US is targeting on tax evaders in Hong Kong. So far its investigation has not gained any ground yet. Even a tiny place like H.K. can give US a lot of headache on cooperation. What will big places like Russia, China, Germany, etc. give US?
 
Quote from TimeCorrosion:

The way I understand this tax is that a o.25% tax will be levied on the value of a transaction; e.g., on $10000 if the stock or option is valued at $10 and the transaction amount is 1000 shares or 10 option contracts.

This is unsustainable and the tax bill will be self-destructive if you do the math.

A 0.25% tax on the principal to open a position would mean 0.5% round turn, and 1% for 2 round turn trades. Most professional traders would do more than 2 trades per day and they would lose 1% of their capital (or the principal involved) per day regardless whether they make profit or not; and they will lose 100% of their capital in 100 days !!! Unless they make more than100% every 100 trading days, they will die !!! If they have to make 100% every 100 trading days (or 250% every year) just to break even, why the fcuk even to work? Might as well watch TV all day and get government unemployment benefits !!! If they make 250% every year, in a few decades, they will be the richest men on earth, but this has not happened. Can CitiBank or Goldman Sachs make 250% every year? I doubt it. But to survive this tax, they HAVE TO make 250% EVERY YEAR!!!

Or am I missing something?
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Let me correct my own math a bit:

Suppose each trade you don't make or lose anyting on the trade itself; after one round turn trade, you are down to (1-0.005)=0.995 of your principal due to tax; after two round turn trade, your are down to 0.995^2; and after n trades, you are down to 0.995^n; and as n increases, your trading principal approaches zero; and in order just to survive, you have to make a HIGHER AND HIGHER **EXPONENTIAL** return each year the more you trade, and NO ONE can fight against an EXPONENTIAL function !!!

We will be so DEAD !!! If large banks are exempt, how is this bill call "Let Wall Street Pay for Main Street?" And tell me this is not robbery in plain daylight by the government!!! What the fcuk !!
 
Quote from TimeCorrosion:

Let me correct my own math a bit:

Suppose each trade you don't make or lose anyting on the trade itself; after one round turn trade, you are down to (1-0.005)=0.995 of your principal due to tax; after two round turn trade, your are down to 0.995^2; and after n trades, you are down to 0.995^n; and as n increases, your trading principal approaches zero; and in order just to survive, you have to make a HIGHER AND HIGHER **EXPONENTIAL** return each year the more you trade, and NO ONE can fight against an EXPONENTIAL function !!!

We will be so DEAD !!! If large banks are exempt, how is this bill call "Let Wall Street Pay for Main Street?" What the fcuk !!
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Thats the counter productivity of the participation fee, or 'tax'
 
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