Crash after 1/4% transaction tax? Don't bet on it!

[JOSEF]

<I>Why do people keep bringing this 1/4% tax up? not one main stream senator or congressman has even mentioned this in months yet people keep beating this into the ground. it has zero chance of passing as millions of jobs dealing with vol will be affected.</I>

I don't recall if Wall Street has ever been this hated/disliked by the Average Joe.

Therefore, since this proposal would be popular among the average person (just check out the comment section of Bob Herbert's column in the New York Times where he proposed this idea), it is not at all impossible that a Democratic Congress would over-reach and enact something like this.

It certainly wouldn't be the first time our Congress enacted something that was both popular but incredibly stupid.

It doesn't hurt for us to be proactive in defeating this proposal. Once enacted it is much more difficult to repeal it compared to if it wasn't enacted in the first place.

 

[myoffices]

we PAY A TAX ALREADY ...iTS CALLED Income tax. If you profit you pay taxes on it at the end of the year. Someone please tell OBAMA to call me. I don't need a position in the cabinet I just need a telephone #so I can say hey what are you doing when he goes far left.

We take risks and losses when we trade stocks. Its not like a loaf of bread. First of all its profits represent an asset while its decline represents a liability. How do you tax a liability? Now you have an unequal system.

When you have a 1/4% transaction tax will you negate the income tax on the profits? I could live with that. But you cannot double dip. Its called investing. This market WILL CRASH IF THE 1/4% TAX ON TRANSACTION.

MY SOLUTION IS SO SIMPLE TO RESCUE THIS ECONOMY ITS LAUGHABLE. I will deliver it on the third of february which is my birthday,

Stay tuned...
Im not in this to feel good Im simply climbing a mountain and laying safety pegs so when I fall I have something to break them.

 

[Gcapman]

Really interesting post!

 

[OldTrader]

Quote from piggie2000:

Why do people keep bringing this 1/4% tax up? not one main stream senator or congressman has even mentioned this in months yet people keep beating this into the ground. it has zero chance of passing as millions of jobs dealing with vol will be affected. forget day traders what about the 500k stockbrokers? the 200k people employed by online brokers? the 50 mil people that have mutual funds? time to put this subject to sleep for now

Specifically mentioned by Nancy Pelosi as a possibility back when the TARP thing was originally being debated. Is that mainstream enough?

OldTrader

 

[wjk]

Quote from piggie2000:

Why do people keep bringing this 1/4% tax up? not one main stream senator or congressman has even mentioned this in months yet people keep beating this into the ground. it has zero chance of passing as millions of jobs dealing with vol will be affected. forget day traders what about the 500k stockbrokers? the 200k people employed by online brokers? the 50 mil people that have mutual funds? time to put this subject to sleep for now

Because if this bill HR676, Universal Healthcare, gains traction, the 1/4% stock transaction tax is one of the taxes that will pay for it. It was reintroduced into the 111th congress this month. It was also in this bill when it was first introduced in the 110th congress, with the transaction tax 1/3% at that time. You will find it at the bottom of the faq page after clicking the first link posted below. There will be no sympathy toward traders by those seeking nationalized healthcare, or anyone else for that matter.

http://www.johnconyers.com/hr676faq

http://www.johnconyers.com/healthcare

 

[TraDaToR]

A market crash because of this? why?

Stock indexes and financial instruments as a whole are global now, other countries and world economy don't care or care little about the US introducing a transaction tax, but it will be the end of the US financial dominance for sure.

As a foreigner, I can better gauge how the US "perform" in today's world and every year I am less and less impressed( I was a real US fan as a kid ). This will be your final self-sabotage.

 

[OldTrader]

Quote from TraDaToR:

A market crash because of this? why?

Stock indexes and financial instruments as a whole are global now, other countries and world economy don't care or care little about the US introducing a transaction tax, but it will be the end of the US financial dominance for sure.

As a foreigner, I can better gauge how the US "perform" in today's world and every year I am less and less impressed( I was a real US fan as a kid ). This will be your final self-sabotage.

Help me out here. Which stock index "around the world" was up this year?

Don't kid yourself. The US sneezes, the rest of the world catches cold.

OldTrader

 

[TraDaToR]

Quote from OldTrader:

Help me out here. Which stock index "around the world" was up this year?

Don't kid yourself. The US sneezes, the rest of the world catches cold.

OldTrader

You may be right for now and the crisis , but it won't be the case for the transaction tax. Believe me that business will just move abroad quietly.

It has nothing to do with biggest banks and financial institutions overestimating their assets for decades before realizing they are fooled, it is just a domestic US financial environment mutation that won't impact other countries.

 

[cstfx]

Quote from piggie2000:

Why do people keep bringing this 1/4% tax up? not one main stream senator or congressman has even mentioned this in months yet people keep beating this into the ground. it has zero chance of passing as millions of jobs dealing with vol will be affected. forget day traders what about the 500k stockbrokers? the 200k people employed by online brokers? the 50 mil people that have mutual funds? time to put this subject to sleep for now

NYTimes op-ed piece about 1 week ago. Those in power in DC now have similar sympathies with those expressed in this rag. And since we all know Congress can't think straight when it comes to money, be afraid. Be very afraid!