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

Here are some more comments from Brad Sherman's call for a FTT during the 'flash crash' hearings earlier this week:

http://www.nasdaq.com/aspx/stock-ma...shermanconsider-tax-on-high-frequency-trading

During the question-and-answer period, Sherman grilled Securities and Exchange Commission Chairman Mary Schapiro about whether individual stocks would suffer if they weren't part of high-frequency trading.

Sherman suggested that a fractional tax, something like 1/20th of a cent, based on a certain size of share trades, could "disrupt the business model of those engaged in high frequency trading."

"If most American stocks were insulated from this high frequency trading, that's where real investors would want to go," Sherman said.

A few Republicans on the panel asked Schapiro to respond to the idea. Rep. Ed Royce (R., Calif.) suggested that such a tax would simply provide less liquidity. Schapiro demurred, saying tax policy is above her pay grade.

Rep. Jeb Hensarling (R., Texas) asked Schapiro whether a transaction tax would be passed on to investors.

"I really don't know the answer," Schapiro said. "I assume most costs are passed on to investors one way or the other."

Later in the hearing, Sherman asked executives at major U.S. securities and futures exchanges about their views on high-frequency trading and if they are serving any useful purpose.

Eric Noll, the head of Nasdaq OMC's transaction services, told Sherman that evidence suggests high frequency traders "provide real value."

"They provide deep markets. They provide tighter bid-offer spreads and reduce costs."

NYSE Euronext's Chief Operating Officer Larry Leibowitz, meanwhile, cautioned against any potential ban on the practice.

"Just saying, 'let's ban high-frequency trading,' -- I think we'd be stunned at the consequences," Leibowitz said.
 
Quote from Stok:

That's not good.
More...

But it doesn't sound like Merkel is really for it:

"Chancellor Angela Merkel (CDU) provided no opportunity for the introduction of an international financial transaction tax. The Chancellor argued rather for the IMF-recommended fiscal activity tax on the profits of financial companies or any salary payments should be raised."

http://www.digitaljournal.com/article/292088

Maybe they'll just introduce it themselves as there is no way this will ever get full G20 support.

-Guru
 
Quote from listedguru:

But it doesn't sound like Merkel is really for it:

"Chancellor Angela Merkel (CDU) provided no opportunity for the introduction of an international financial transaction tax. The Chancellor argued rather for the IMF-recommended fiscal activity tax on the profits of financial companies or any salary payments should be raised."

http://www.digitaljournal.com/article/292088

Maybe they'll just introduce it themselves as there is no way this will ever get full G20 support.

-Guru
More...



Exactly. The full G20 will never agree to this. We can expect to hear more demands for a FTT over the coming weeks from every libertard group out there. They will be posturing to push their agenda for the G20 summit coming June 26-27 in Toronto. As per usual, they won't get a FTT.
What we need to watch is for Obama's Debt. Reduction Panel's recommendations for reducing the deficit to come at the end of the year. This is when all tax increase proposals, new tax proposals, spending cuts, etc....... will be brought up. I'm not concerned about a FTT being seriously considered, although I'm sure it will be brought up. I don't even think a VAT tax would draw enough support to pass into law. I would not support any tax increases or new taxes. If these assholes in Washington want to reduce the deficit, then they should enact massive spending cuts. Eliminate all of these social welfare, libertard programs, where people just sit on their asses, pop out babies every five minutes, and expect the Gov't. to support them. But of course, this is what Obama wants. He wants an entire nation dependent on Gov't. subsidies, while eliminating any opportunities for wealth creation or financial success.
 
http://www.reuters.com/article/idUSLDE64H07J20100518

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

Asked whether Germany would support a financial transaction tax on a European level if it cannot be implemented internationally:

"Actually, such a thing only makes sense when it can be introduced globally. Europe and also (Germany) will exert itself in this respect. But there are considerable doubts as to whether it will come to pass globally.

"I think that what we decided in cabinet in Germany before Easter -- the restructuring of the banking sector and a bank levy -- compliments what the IMF recommends, that is the inclusion of such a taxation of the financial sector. (It) is a more sensible solution -- as long as one cannot agree on the introduction of a financial transaction tax.

""We Europeans must advocate a solution. In the end, the decisive date is the G20 meeting in Canada in July.
 
You must log in or register to reply here.
Back
Top