A really small Wall Street tax can make a really big difference

zdreg said:
calculate the numbers. there were 15,000 posts on this subject. people still don't know that a tax of .001 or 10 cents per $1000 would put day traders and hft traders out of business.
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collecting 350 billion in taxes from a ftt is nonsensical. it is based on static analysis that traders will continue to trade the same way as before. traders will adjust by not trading equities, but will gravitate toward untaxed instruments or will retire from trading.

every piece of crap tax legislation is based upon static analysis that peoples' behavior will remain the same after the tax is imposed. people will find ways to minimize their tax burdens. That is the reason projected revenue from a new tax is never collected.
 
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By the way, the currently discussed proposal for an FTT in Europe specifically excludes trading in government debt from the tax.

This means that at least some of the people working on this tax are now fully aware that it has the potential to totally mess up the markets it will be applied to.
 
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Wall street will be fighting tooth and nail against it, expect many economists to predict economic doom.

Many other countries have already been doing so for years, including the UK. It works just fine, with additional taxes put in place for offshore investors to keep the system from being exploited.
 
Zestilio said:
Wall street will be fighting tooth and nail against it, expect many economists to predict economic doom.

Many other countries have already been doing so for years, including the UK. It works just fine, with additional taxes put in place for offshore investors to keep the system from being exploited.
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Sadly, this bill will never happen with the political system we have today.

Even though the tax is only 30 cents per $1,000 and would generate $350 billion, hedge funds and investment banks will have the incentive to spend up to $349,999,999,999 "lobbying" politicians to do otherwise. Too bad Hillary Clinton, Jeb Bush, and Marco Rubio's opinions can already be bought for just a measly couple million.
 
Zestilio said:
Wall street will be fighting tooth and nail against it, expect many economists to predict economic doom.

Many other countries have already been doing so for years, including the UK. It works just fine, with additional taxes put in place for offshore investors to keep the system from being exploited.
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How much in revenue does the UK collect off this tax?
 
zdreg said:
. people still don't know that a tax of .001 or 10 cents per $1000 would put day traders and hft traders out of business.
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Day traders? I think you confound with scalpers. Day trading is existing for decades. 30 years ago, you paid at least 1% in 1% out, even much more.
HFT traders? Good news. Let s get these thieves out of business.

CM
 
In UK there are three types of tax you have to pay when trading shares, capital gains tax, income tax and stamp duty. However you need not worry about calculating stamp duty as it is dealt with by your broker when you enter a trade. The current stamp duty you pay on entering a trade is 0.5% so if you buy £10,000 worth of stock you will have to pay £50 straight to the government.
 
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