Call to Arms - We Must Fight the 0.25% Stock Transaction Tax

Quote from bathrobe:

The major indices would have an enormous loss of both liquidity and value, if it went up for a vote the Dow would probably lose 10% in a day. Businesses would move to other countries.

Liberals talk of creating jobs, this would lead to an enormous number of jobs leaving the country.
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Please, guys, include this point in your letters.

Also, include the point that our markets with their liquidity and popularity attract tons of foreign money. This money becomes part of our GDP through commissions and exchange profits. We don't want to harm an industry that brings money into our country that wouldn't otherwise be here.
 
Quote from tomahawk:

Makes sense. Cap gains would plummet too, possibly offsetting any increase in tax revenue.
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This is debatable, since for every winner, there is a loser.

*However*, since the max loss you can deduct each year is $3k and your max gain you have to pay taxes on is limitless, it would definitely affect taxes collected on capital gains in the near-term. Stretched out over 20 years or so, it might not make that much of a difference, though.

Since near term is probably more important to most legislators than far in the future, however, it's still a valid point.
 
Penny wise, pound foolish.

Foreigners park their money in US financial institutions to trade in the US. Now if people can find a lower taxed exchange there will be incentive to move. Even Americans will be moving their money abroad. Wealthier than average Americans I might add. So people are going to be pulling money out of the US financial system and not be as eager to bring it in.

Speculation in stock markets is not gambling. Speculation increases the pool of money made available to businesses. But let us assume for the sake of argument it is the equivalent of gambling. Would anyone believe that taxing each bet placed in its casinos would not hurt Las Vegas as a gambling or tourist destination?

The US is already destroying its dollar. Now it seems it is intent on destroying its markets as well.
 
I was reading an article that talked about why London didn't fail as a financial center after the UK implement their tax, and the article was saying it was because the UK also implemented a law saying it wouldn't tax foreigners on gains made on foreign exchanges. So, it wasn't that the transaction tax of the UK didn't affect things, it was that the other law they implemented affected things in a positive manner at the same time. So, the net effect was that their financial sector didn't suffer much.

I need to find that article again, if it rings any bells for anyone, please post on it, it's relevant, and it might take me a while to find what I was reading again.
 
Quote from tomahawk:

What justification for no tax are you guys giving in your submissions? Unless it significantly hurts pensions and 401k's I don't see us 'greedy speculators' having a leg to stand on, in most people's minds.
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It actually HELPS pensions and 401k's, because frequent traders on average LOSE money.

Most of what they lose goes to commisions, but they also provide liquidity and when a pension fund wants to buy large amount of shares for the long term, there are many short term losers selling to them.
 
Just a simple calculation as Etrade example. If you are trading with ETrade or any of your brokerage, do you want to pay $146.02 to do a round trade of 1000 shares at $25.00 per share? If you do, you are more than stupid. Do not blame ETrade. If the transaction tax applies, you have to pay that much, that is, $21.02 (2 * 9.99 + 25.0 * 1000.00 * 0.0000418) plus 25.00* 1000.00 * 2 * 0.0025 = $125.00.
 
Quote from Mr. EB:

I call on the financial stock community blogosphere to come together and fight the 0.25% stock transaction tax. We must call our Congressmen and flood their email boxes to let them know how much of a horrible idea this is.
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Sorry....I am still busy fighting the 8.5 TRILLION dollar theft of american, so this piddly $hit tax is very low on the totem pole imo. :confused:
 
Quote from AMT4SWA:

Sorry....I am still busy fighting the 8.5 TRILLION dollar theft of american, so this piddly $hit tax is very low on the totem pole imo. :confused:
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8.5 trillion that was built on an illusion over the past one or two decades. Hard to see it as theft when it wasn't really there.
 
Quote from tomahawk:

Makes sense. Cap gains would plummet too, possibly offsetting any increase in tax revenue.
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Exactly what I thought when I first heard about this. That, and a drop in overall volume and liquidity dry up.
 
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