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

Quote from lindq:

>>With apologies to Mr. Amihud and Mr. Mendelson and the Wall Street Journal for copying and pasting, here is the article for those who do not subscribe to the Journal.

By YAKOV AMIHUD AND HAIM MENDELSON

Our research shows unambiguously that higher trading costs depress the prices of stocks and bonds. A transactions tax will end up punishing Main Street, hurting the economy and reducing U.S. Treasury revenues in the next few years. It will thus exacerbate the effects of the financial crisis.
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Has anyone been able to find this original research by Amihud and Mendelson? Is it published anywhere? I've searched but can't find anything.

Research showing "unambigously" that higher trading costs hurt Main Street more than Wall Street is the most powerful argument right now against the FTT.

If anyone finds anything, please post it to this thread.

I sent an email to the Treasury Department to see if I can get the study they used. If I get a response I'll post it here.
 
This isn't what you're looking for Tom, but maybe of interest nonetheless:

Examining the Main Street Benefits of our Modern Financial Markets

Charles M. Jones and Erik R. Sirri

From the executive summary:

America’s vibrant capital markets are the global gold standard, fueling the financial needs of business from the smallest single-person startup to our largest public companies. They enable the dreams of American families and help make the American economy the envy of the world. In this report, we show how Main Street businesses and workers benefit from our nation’s well-regulated, efficient, transparent, and modern capital markets. We also demonstrate that seemingly small changes such as a financial transactions tax can cause considerable damage far fromWall Street, harming both investors and American businesses and impeding job recovery and growth.

www.batstrading.com/resources/news/USChamber_financialstudy.pdf
 
"In a letter to the deficit panel, lawmakers–led by Sen. Tom Harkin, D-Iowa, and Rep. Peter DeFazio, D-Ore., said that analysis conducted by the Joint Committee on Taxation found that the Wall Street Trading and Speculators Tax Act introduced Nov. 2 would raise $353 billion from January 2013 through 2021."

http://www.advisorone.com/2011/11/11/lawmakers-push-financial-transaction-tax-as-defici
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I would like to see a 2,000 page report proving it would result in negative revenues exceeding over $1 trillion during that time period.
 
I don't reside in the US but I expect financial advisors represent the bulk of the public by way of insurance and investment. Every one of these FA's should ensure their clients are made aware of the damage this will do to their savings, investments and retirement let alone what it will do to the economy, and get their clients to demand that this idea be knocked out of court.

There has to be some way to contact the broker networks and give them a simple one or two page briefing and suggested urgent action points.
 
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