1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Here's a link from Jan. 27th indicating the CFTC may have to impose user fees on traders if Congress doesn't give the agency enough money to police the newly regulated $583 trillion derivatives market.
http://www.google.com/url?sa=t&sour...MF5kE-mDxNt6bcYpA&sig2=45837xmC-0cZMif2q-bpDw
http://www.google.com/url?sa=t&sour...MF5kE-mDxNt6bcYpA&sig2=45837xmC-0cZMif2q-bpDw
I think this would be far different than an FTT though. Probably more let a set amount per trade (and not a %). I don't like it but I really don't think it would amount to much. Plus it probably won't happen either
-Guru
I'm also thinking it's highly unlikely it would happen. The Republicans in the House wouldn't let something like this occur. In the end, I'm sure some give and take would take place, and the CFTC would get the additional funding needed to police the derivative markets under the new Dodd-Frank law without imposing user fees on traders.
Exactly. The amount of funding needed to make up the gap for this is peanuts really. It's not like were talking billions of dollars here.
-Guru
listedguru
Registered: Aug 2002
Posts: 1178
02-14-11 09:14 AM
Quote from rc8222:
I'm also thinking it's highly unlikely it would happen. The Republicans in the House wouldn't let something like this occur. In the end, I'm sure some give and take would take place, and the CFTC would get the additional funding needed to police the derivative markets under the new Dodd-Frank law without imposing user fees on traders.
Exactly. The amount of funding needed to make up the gap for this is peanuts really. It's not like were talking billions of dollars here.
-Guru
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TraDaToR
Registered: Dec 2006
Posts: 2359
New Post 02-14-11 01:33 PM
I calculated the other day that they would need to charge 0.02 $ or so per contract to cover the needed budget, but since it is for a useless commission like CFTC they will find 0.2$ is better. Still nothing like a 10$ per contract FTT.
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http://westlawnews.thomson.com/Bank...e_Madoff_case,__net_winners__could_get_lucky/
in the madoff scam more monies are likely to be recovered than was actually lost in the fraud. do u doubt that this excess will end up in government coffers?
the same with your your calculations. it is the camel's nose under the tent. it will continue to rise just as the initial US income tax was around 5% and covered 2% of the population.
Registered: Aug 2002
Posts: 1178
02-14-11 09:14 AM
Quote from rc8222:
I'm also thinking it's highly unlikely it would happen. The Republicans in the House wouldn't let something like this occur. In the end, I'm sure some give and take would take place, and the CFTC would get the additional funding needed to police the derivative markets under the new Dodd-Frank law without imposing user fees on traders.
Exactly. The amount of funding needed to make up the gap for this is peanuts really. It's not like were talking billions of dollars here.
-Guru
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TraDaToR
Registered: Dec 2006
Posts: 2359
New Post 02-14-11 01:33 PM
I calculated the other day that they would need to charge 0.02 $ or so per contract to cover the needed budget, but since it is for a useless commission like CFTC they will find 0.2$ is better. Still nothing like a 10$ per contract FTT.
------------------------------------------------------
http://westlawnews.thomson.com/Bank...e_Madoff_case,__net_winners__could_get_lucky/
in the madoff scam more monies are likely to be recovered than was actually lost in the fraud. do u doubt that this excess will end up in government coffers?
the same with your your calculations. it is the camel's nose under the tent. it will continue to rise just as the initial US income tax was around 5% and covered 2% of the population.
Here's a little more info on the user fee Obama is proposing on the derivatives industry:
User Fees:
"For the CFTC, the budget would jump to $308 million -- an increase of more than 80 percent over Congressâs 2010 allocation. Obama proposed that the agency introduce user fees on the derivatives industry to raise as much as $117 million in the 2012 fiscal year and $588 million through 2016."
"House Republicans, who took power after the November elections, have pointed specifically to the CFTCâs derivatives rules as being too onerous and, in some cases, without merit."
âThe commission is currently headed down a path that extends well beyond the statutory requirements of Dodd-Frank and is attempting, at the request of no one, to micro-manage individual risk across all industries and sectors,â Representative Michael Conaway of Texas, a House Agriculture panel subcommittee chairman, said last week.
Representative Scott Garrett, a Republican from New Jersey, said the user fee proposal is âan off-budget accounting gimmick that will hide the true cost and scope of the federal government.â
http://www.bloomberg.com/news/2011-...ls-for-6-5-billion-5-000-staff-in-budget.html
-Guru
User Fees:
"For the CFTC, the budget would jump to $308 million -- an increase of more than 80 percent over Congressâs 2010 allocation. Obama proposed that the agency introduce user fees on the derivatives industry to raise as much as $117 million in the 2012 fiscal year and $588 million through 2016."
"House Republicans, who took power after the November elections, have pointed specifically to the CFTCâs derivatives rules as being too onerous and, in some cases, without merit."
âThe commission is currently headed down a path that extends well beyond the statutory requirements of Dodd-Frank and is attempting, at the request of no one, to micro-manage individual risk across all industries and sectors,â Representative Michael Conaway of Texas, a House Agriculture panel subcommittee chairman, said last week.
Representative Scott Garrett, a Republican from New Jersey, said the user fee proposal is âan off-budget accounting gimmick that will hide the true cost and scope of the federal government.â
http://www.bloomberg.com/news/2011-...ls-for-6-5-billion-5-000-staff-in-budget.html
-Guru
There is also some info here about sec funding in Obama's new budget:
Obamaâs proposal falls short of spending levels authorized for the SEC in Dodd-Frank by about $100 million. The law authorized an allocation of $1.5 billion for the SEC in fiscal 2012, with subsequent increases that would double the agencyâs budget by 2015. Under Obamaâs proposal, the SECâs budget would increase 28 percent to $1.4 billion.
Todayâs budget proposal would authorize the agency to add more than 600 new employees, a staffing increase of about 16 percent. Under Obamaâs plan, SEC enforcement -- the agencyâs chief cost -- would rise 27 percent to $460 million.
The presidentâs proposal for a budget beginning Oct. 1 sets apart $50 billion for an SEC reserve fund to be used for spending ânecessary to carry out the functions of the commission.â
âThese funds will provide the SEC with the resources needed to carry out both our longstanding core mission as well as our new responsibilities for derivatives, hedge fund advisers and credit rating agencies,â Securities and Exchange Commission Chairman Mary Schapiro said in a statement today, adding that the agencyâs spending is offset by transaction fees and doesnât add to the deficit.
http://www.bloomberg.com/news/2011-...ls-for-6-5-billion-5-000-staff-in-budget.html
-Guru
Obamaâs proposal falls short of spending levels authorized for the SEC in Dodd-Frank by about $100 million. The law authorized an allocation of $1.5 billion for the SEC in fiscal 2012, with subsequent increases that would double the agencyâs budget by 2015. Under Obamaâs proposal, the SECâs budget would increase 28 percent to $1.4 billion.
Todayâs budget proposal would authorize the agency to add more than 600 new employees, a staffing increase of about 16 percent. Under Obamaâs plan, SEC enforcement -- the agencyâs chief cost -- would rise 27 percent to $460 million.
The presidentâs proposal for a budget beginning Oct. 1 sets apart $50 billion for an SEC reserve fund to be used for spending ânecessary to carry out the functions of the commission.â
âThese funds will provide the SEC with the resources needed to carry out both our longstanding core mission as well as our new responsibilities for derivatives, hedge fund advisers and credit rating agencies,â Securities and Exchange Commission Chairman Mary Schapiro said in a statement today, adding that the agencyâs spending is offset by transaction fees and doesnât add to the deficit.
http://www.bloomberg.com/news/2011-...ls-for-6-5-billion-5-000-staff-in-budget.html
-Guru