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

Quote from bullmarket79:

you guys know usa had this tax from the 30s to the 60s right? There isnt anything new under the sun. With 3 trillion a day traded it would add up and hopefully pay off some debts,,although my confidence in politicians is at an all time low.
Now here is my question,,as americans we have to pay taxes no matter where we earn income, now if usa has this and you trade some other nations markets,,would we still have to pay this tax?
Like if you live in one state and purchase products over the internet, technically most states want the sales tax,,most dont bother to pay it since its difficult for the state to follow the transactions,,but was curious what americans did back n the day when this tax was on the books,,anyone know? thanks guys,,have a great labor day weekend
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How about you read the thread...
 
Quote from Explorer:

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However whenever cool-headed technocrats (the IMF, the European Commission, the central banks - US, EU, and UK) have explored the consequences of the FTT, all have poured cold water on the idea.

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Explorer,
Do you (or anyone else reading this) have references of central banks (from G-20 countries) doing studies on this? If so, can you please post them. Thank you
 
Quote from cstfx:

Anyone catch Trumpka on CNN Sunday program? Was he pushing the FTT debate or only sticking to union politicking?
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I'd like to know what the douche was pushing as well if anyone saw it.
 
Quote from cstfx:

just found the transcript - other than a mention for the transportation bill (which has the FTT buried in the language), nothing out of the ordiniary - just the same, leftist, "look what we inherited" mantra we are all used to

http://transcripts.cnn.com/TRANSCRIPTS/1009/05/sotu.01.html
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Are we certain that the "Surface Authorization Authorization Act has a FTT in it? This is different than Defazios bill to slap a .25% tax on financial transactions.

There is some info on it at the bottom of this page but it doesn't have an HR#:

http://transportation.house.gov/

I skimmed through it but didn't see any mention of an FTT.

Something to keep an eye on as the Obama administration has been talking about putting together an infrastructure spending program recently. But again I highly doubt an FTT is going to part of any of this.

-Guru
 
Quote from annaland:

Explorer,
Do you (or anyone else reading this) have references of central banks (from G-20 countries) doing studies on this? If so, can you please post them. Thank you
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Here's an extract from G-20 Australian Treasury head's tax review issued earlier this year:
(NOTE Australia's PM Rudd was demolished 2 months ago by his trusted deputy - a power-hungry extreme left winger union- worshipping incompetent bogan female.)

Australian Government's Henry Tax Review (Final Report) May 2, 2010, officially rejected any form of Tobin tax:-

Box D4-1: A Tobin Tax?

http://taxreview.treasury.gov.au/co...-2.htm#Box_D4_1



"The goal of a Tobin tax is to dampen de-stabilising speculative financial activity. By putting 'sand in the wheels' of the financial system, proponents believe that financial prices (such as foreign exchange rates) would be less likely to overshoot or undershoot economic fundamentals. If de-stabilising speculative transactions are more typically short-term and high-volume, they would be disproportionately affected by the tax, even though it would be levied at a low rate, based on value, to limit its impact on real activity. More recently, proponents have argued that the revenues could be used to finance international public goods, such as the United Nations or world poverty alleviation.

Transaction taxes like the Tobin tax are generally inefficient because the tax rate rises according to how often an asset changes hands, rather than any underlying economic value. There is no 'economic base' for transaction taxes. In general, transactions tend to create value because they shift resources to higher-value purposes. If these prices are publicly available, the transactions also provide the public information that assists wider resource allocation in the community.

Financial markets are not perfectly efficient. Notably, the global financial crisis resulted from a widespread mispricing of risk by financial markets. However, a financial transactions tax would not directly address the sources of financial market failure, such as moral hazard arising from implicit or explicit government guarantees, incentive structures skewed toward short-term gains, and human psychology. There is no necessary correlation between trading volume and the creation of systemic risk. The tax would apply indiscriminately to transactions that are socially useful — including those that contribute to financial system stability — and those that are costly.

In fact, transaction taxes could potentially reduce financial stability. They would reduce market liquidity, which could lead to prices becoming more volatile and more prone to misalignment. They would also impede hedging activity, which can involve a large volume of transactions to disperse risk. Although the great majority of financial transactions occur between financial firms, much of this is generated by the process of reallocating risk between financial firms rather than speculation. Further, speculation is not inherently destabilising as it can sometimes help correct misalignments.

It would be difficult to prevent activity shifting to unregulated sectors or jurisdictions. Businesses would also have an incentive to structure themselves to avoid the tax. For example, large, vertically integrated businesses use fewer transactions to make the same product and would pay less tax. Even if levied at a low rate, a tax would cause some impediment to real activity (for instance, currency transactions are essential for international trade and investment) and may impede some necessary adjustments."
 
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