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

Quote from vicirek:

Key word is Capital. It is not a hit. It is removal of Capital from the economy.

It is transfer of money from economically active people to incompetent and corrupt bureaucrats.
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that is given about men. even if they agree with you they still like to perform a one upmanship.

whatever a government takes from me is a hit to me.

capish?
 
Quote from loufah:

The state can tax the sale of a product even when no profit is being made on it. The state can tax transfers of property when no money is being given in exchange.
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Understood. However this is exchange of capital property for cash which is zero sum transaction.

Capital property is completely different animal than "property". It is expected to produce income but there is inherent risk involved.

Any effects from that capital property are taxable.

It is tax on risk takers and without them there is no progress (really) and yes there are many failures per one success story.

Any tax on transactions is restricting flow of capital. Unrestricted flow of capital is foundation of free economy.

Do people who advocate this tax actually understand what they are talking about?

If their goal is socialism as a stepping stone to communism than just say so! Why hide behind doing some good deeds?
 
Quote from zdreg:


whatever a government takes from me is a hit to me.

capish?
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Agree. But the effects of that hit are wider and long lasting. It is not about today and maybe tomorrow. This hit hits everybody in the long run including FTT advocates.
 
Quote from zdreg:



it is a bloody shame that i have to post this again for the mathematically clueless.

same calculation with a .002 rate =$50,000 = 100% hit to capital.
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Translation for mathematically clueless:

If you kill the cow that produces milk then there is no more milk and no cow!

(these experiments have been scientifically conducted in the former Soviet Union and results are not widely available)
 
Quote from tomdavis:

The fall elections are in full swing. If you want to do something to stop financial transaction taxes, here's your opportunity.

Contact your local congressional representative and your state's senators. They all have websites and contact information.

Send each of them a polite, professional email stating that you're against financial transaction taxes and why you're against them.

Encourage friends, relatives and other traders to do the same. Also contact your broker(s) and anyone else who's in the business.

If you've already done this, DO IT AGAIN! This is campaign season. Political candidates and their staff members are paying attention.



If we fail to strongly make our case we could end up with the FTT that will put many of us out of business.


Below is a sample letter/email to send to congressional representatives/candidates-- feel free to copy it or use it in any other way you feel is appropriate.

============================================


Subject: Pending Financial Transaction Tax Legislation (bills introduced by Ellison and Harkin-Defazio)


Dear ___________________

The proposed Financial Transaction Tax legislation is not a tax on Wall Street – It’s a tax on Main Street.

Activists around the world support the Financial Transaction Tax (aka, “Tobin Tax” or “FTT”), claiming it would raise billions in revenues and promote social justice.

As sincere as some of these activists may be, their story is missing important relevant facts.

For example, did you know….


• The Secretary General of the European Federation for Retirement Provision says the FTT is not a tax on Wall Street, but rather a tax on retirement savings and other “innocent bystanders.”

• A study by the Dutch Central Bank showed that over 40% of the FTT would be paid by pensions and retirement savings

• James Tobin’s co-author, Berkeley Professor Barry Eichengreen, says the Tobin tax is the “wrong tool” to raise revenues.

• A study by the World Bank concluded that “… neither the tax revenues nor the efficiency gains hoped for… are likely to materialize.”

• The IMF showed that the best way to hold banks responsible is to tax them directly because the FTT tax burden would “fall largely on final consumers,” not the financial sector.

• Archbishop Desmond Tutu once supported the FTT, but now opposes it.


To learn why a diverse group of people from many different backgrounds opposes the FTT, please read “Straight talk about the FTT” at: www.financialtransactiontaxes.com .


Sincerely,


_________________________
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beautiful
 
Quote from loufah:
The state can tax the sale of a product even when no profit is being made on it. The state can tax transfers of property when no money is being given in exchange.
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Quote from loufah:
What's the basis for this claim? If the tax causes volume to drop back to where it was in the 1980's, were there really that many fewer people in the industry back then? If people have to pay 1/4% for each trade - if you look back before decimalization people buying at the ask were paying a half percent or more penalty on each trade - were there hundreds of thousands of fewer people in the industry?
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"The legislation embodies the Robin Hood Tax, a 0.5% tax on the trading of stocks, 50 cents on every $100 of trades"


Hey, it's only 50 cents on every $100 of trades. Or is it? Equivalent to a one-time sales tax or is it?

Rep. Ellison will take $1 out of my $100 account each time my average mutual fund, with an average turnover of once per year, adjusts its portfolio every year for 40 years. Forty years later Rep. Ellison has taken $40 out of my $100 account. More importantly, the tax will remove liquidity from the market. Then the spread will increase and cost even more than the tax. Yes, i said more than the tax. I lose more than my original investment. So, the plan is to discourage investing and rely on Social Security. LOL. When the 1914 to 1966 tax was in place, very few were invested. It was an exclusive club that only rich boys could belong. The Johnson Administration removed the tax and now we have 100 million middle class people participating in wealth creation.

The FTT tax is purely ideological and not based on reality nor truth other than to punish investors. FTT taxes the public's investment infrastructure, indirectly and directly taxes middle class wealth, drastically reduces investment participation, increases dependence on government subsistence, gives power, wealth and advances corruption for those that create these ridiculous taxes.

European Parliament has proposed an FTT.

UK Parliament European Scrutiny Committee citing the EU Commission's FTT Impact Assessment, "a 3.43% fall in EU GDP equates to a fall in economic output worth €421 (£362) billion and a 0.34% fall in employment equates to a loss of 812,000 jobs."

UK Parliament Economic Sub-Committee of the House of Lords, "The FTT is likely to induce a loss in GDP between five and 20 times larger than the revenues raised from the tax."
 
Quote from drayton sawyer:

ok, now with the tax being implemented in france, anybody know how things are going over there? maybe to early to see yet.
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The Left wing have a lot to answer for imho
 
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