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

Quote from zdreg:

do u live in the real world? the FTT will only affect retail traders.
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A careful reading of the original question to which I responded will show that I do "live in the real world".

Actually, a not-so-careful reading ought to suffice.

In the event, however, that you are non-native speaker of English -- or that you are mentally challenged in some way -- allow me to clarify:

The poster asked whether the FTT would apply to retail traders as well as professional firms, implying the assumption that FTT would be imposed primarily on professionals.

My response implied that s/he should invert his/her assumptions, by rephrasing his/her question to imply the assumption that FTT would be imposed primarily on retail traders. A rhetorical tactic, if you will.

While I hope this clears things up, I fear it will only confuse you further. Oh well, I've done what I can.
 
The UK Stamp Duty Tax is the template. About 70% of transactions by regulated dealers (banks etc) are exempt. It is only the retail traders and investors that pay the 0.5% tax each time.

The Robin Hood idiots sells the idea of it being a "bankers tax" but they always cite the UK Stamp Duty as an example of how it can be done. Really misleading.

We need to call them out whenever they mention the UK Stamp Duty.

zdreg is probably correct that it will be the retail guys that will pay first, the GS of the world will lobby to get last minute exemptions when it has all been agreed and voted on..
 
You're exactly right. Dean Baker is the worst, saying that the UK's stamp tax doesn't affect business in London. I've sent him several emails correcting him, but he continues telling the same half-truths (lies) over and over again.

Here's the whole story:

Supporters of the FTT often tout the success of the UK “stamp tax,” but fail to disclose that most banks and investment firms do not pay the tax because they're exempted as "qualified market makers." Over 70% of all London Exchange transactions pay no stamp tax, and 100% of all other transactions (e.g., trades on the CME or NYSE) are also exempt. Of all the transactions that originate in the UK, fewer than 3% are subject to the stamp tax.


Quote from benwm:

The UK Stamp Duty Tax is the template. About 70% of transactions by regulated dealers (banks etc) are exempt. It is only the retail traders and investors that pay the 0.5% tax each time.

The Robin Hood idiots sells the idea of it being a "bankers tax" but they always cite the UK Stamp Duty as an example of how it can be done. Really misleading.

We need to call them out whenever they mention the UK Stamp Duty.
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Quote from tomdavis:

You're exactly right. Dean Baker is the worst, saying that the UK's stamp tax doesn't affect business in London. I've sent him several emails correcting him, but he continues telling the same half-truths (lies) over and over again.
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These are not "half truths" but lies DAMN IT!

I have friends with extreme left wing views and we have some interesting discussions from time to time. No problem with that.

But call a spade a spade. Baker is deliberately misleading the public to reach his objectives. He needs to be confronted whenever he peddles such lies and held accountable for this BS.
 
Quote from tomdavis:

Of all the transactions that originate in the UK, fewer than 3% are subject to the stamp tax.[/u]
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The UK stock day traders I have heard of trade US stocks to avoid the stamp duty. Most trader though like myself focus on futures.

It is also worth mentioning that there is quite a lot of activity in the spread betting market - so the percentage of overall trading is even lower if you include this market.
 
Quote from tomdavis:

You're exactly right. Dean Baker is the worst, saying that the UK's stamp tax doesn't affect business in London. I've sent him several emails correcting him, but he continues telling the same half-truths (lies) over and over again.

Here's the whole story:

Supporters of the FTT often tout the success of the UK “stamp tax,” but fail to disclose that most banks and investment firms do not pay the tax because they're exempted as "qualified market makers." Over 70% of all London Exchange transactions pay no stamp tax, and 100% of all other transactions (e.g., trades on the CME or NYSE) are also exempt. Of all the transactions that originate in the UK, fewer than 3% are subject to the stamp tax.
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Do you have a cite for those figures?
 
Quote from Xspurt:

link doesn't work
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Sorry had an extra period on end

Www.tradersadvocacy.org

I've gotten interest from some brokers and media for sponsorship.

On yesterday's Webinar meeting, we came up with the idea of adding video interviews to the site and YouTube. Main Street traders who are also nurses, in unions, firefighters, veterans etc. To put a human face on trading and show that OWS groups are also traders. So OWS should focus on unethical behavior from bank CEOs and their regulators, not small business traders.

We need all of your help concentrated in Traders Advocacy too.

Thanks.
 
I got this information from a friend of mine who's a futures trader currently living in Stockholm, but worked for a large investment firm in London for almost 10 years. He said that the stamp tax was jokingly referrred to as the "punters tax" because only the ordinary guy on the street paid it. He said his firm was able to derive the numbers based upon data that was available to the large firms at the time he was in London (1998-2007).

He said that the investment firm he traded for had over 30 billion (I'm not sure if it was Euros or Pounds) under management and never paid a penny in stamp taxes.

Here's the reality in London: If you're a bank that's exempt you can trade the London Exchange and pay no stamp tax. If you're not an exempt bank, you can still trade the largest, most liquid stock/futures/options exchanges in the world (NYSE, CME, NASDAQ, Euro Next, KRX, Toronto, Hong Kong, etc.) and pay no UK stamp tax because it only applies to trades on the London Exchanges. There are so many ways around the UK stamp tax that it's irrelevant.

Quote from trom:

Do you have a cite for those figures?
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