Green on the 1/4% Trading Tax

From the Green article

"Many U.S. traders are already well versed in trading abroad, and they could accelerate this trend if the transaction tax is passed. This will seriously undermine U.S. stock market values and hinder the fleeting recovery efforts underway now. It’s going to be hard for the IRS to assess a financial-transaction tax on foreign transactions, but don’t put it past them. (Of course,
Americans pay U.S. income taxes on global profits.)"

Well, you can be sure I will be looking at IB Canada IF trading foreign futures were not taxed. Imagine how many Canadian brokers would get new business. Maybe THAT would be a good business to get into.

However, I have a feeling the US will also apply this 1/4% tax to US citizens, even if trading FOREIGN indexes at a foreign broker. The

But I would have no complaint trading the Toronto stock index...
 
Quote from sogodo:

or, you can have dual citizenship, and trade futures internationally

i think the empty spots are always filled by more smart entities

so far, evasion of double taxation is pretty legal in this country

forex is good, but spreads usually are much better in futures market
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Well, I don't have dual citizenship so I wouldn't be able to do that directly. But, I suppose I could trade futures from an offshore account. Only problem would be transferring the profits back home without getting in trouble with IRS.
 
Screw this trader tax BS.. What we need is a 1% national consumption tax. A 1% national sales tax will not be too huge to kill any future gain in consumption, either. Imagine what will happen to the markets if this trader tax is passed.. Hello Dow 500!! Forget about taxing capital formation, tax consumption! Let's bring the illegal immigrants and black markets into the tax fold by introducing a 1% consumption tax.
 
Quote from wjk:

Not possible with a congress that believes wealth comes from government and is openly advocating redistribution



I believe destroying the free market is the goal of the left, and what better tools to use than taxation and redistribution.

Sure, I'll write congress, but I don't believe they give a shit. Anyone who's been trading for awhile knows what type of effort and cost went into their game, as in any business..maybe even more so for traders. How many in this forum think the current congress gives a shit?

The tax, if implemented as described in the PDF link, ends my trading career, which has finally become profitable after nearly 6 years and 75k. I'm just a little guy...who pays my taxes...and my mortgage. I guess if they put me out of business I can default and get on the tit. And I can keep writing off my annual 3K for the next 20 years.
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I don't think you have anything to worry about - I don't think Wall Street would allow it, they've known since the beginning of the exchange that the system doesn't work without short-term speculators...all they have to do is go back in history and see what happened when they did try it.

True - the public are idiots - they think short sellers are theives and the actual reason for the banks going out of business. Plus idiot buy & hope baby boomers need someone to blame for their losses - so they blame it on speculators....

When we get a fake rally, this will all probably get swept under the rug.
 
Don't worry about it guys, worse comes to worse, I can help set you guys up in Toronto, you don't need to end your trading over something so simple.

The Canadian exchange wouldn't follow the americans. In fact, the financial people in the Canadian government will see it as an opportunity for alot more business. As it stands, our banks have been rated the highest in the world so your funds are safe here.
 
Quote from Bear Plunger:

Don't worry about it guys, worse comes to worse, I can help set you guys up in Toronto, you don't need to end your trading over something so simple.

The Canadian exchange wouldn't follow the americans. In fact, the financial people in the Canadian government will see it as an opportunity for alot more business. As it stands, our banks have been rated the highest in the world so your funds are safe here.
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We already have a 5% national consumption, plus another % depending what province you live in. No need for this trading tax here :D
 
I wonder how much of GDP really is tied to trading. It's more than just the traders, you've got magazines, newspapers, bloggers, trading advisors, etc. I'm thinking there might actually be close to 1 job that doesn't involve trading for every profitable trader. Some of those would probably go away, not all, though.
 
Quote from Susannah:

I wonder how much of GDP really is tied to trading. It's more than just the traders, you've got magazines, newspapers, bloggers, trading advisors, etc. I'm thinking there might actually be close to 1 job that doesn't involve trading for every profitable trader. Some of those would probably go away, not all, though.
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US brokers generated One Half Trillion dollars in revenue for 2007, two thirds of the global securities industry.

http://www.sifma.org/research/pdf/RRVol3-5.pdf


From a different source that I lost:

Derivatives only: US Brokerages generated $33 Billion in revenue just from derivatives trading alone in 2006, surpassing the US pizza industry by $3 Billion.

The entire global securities industry generated $713 Billion in 2006.

All these other countries cannot wait to get at US market share. Pass the tax, pass the tax they say:


http://www.yomiuri.co.jp/dy/business/20090118TDY08001.htm

Jan. 18, 2009

...letter to U.S Treasury Secretary-designate Timothy Geithner from Isao Kubota, president of Fukuoka-based Nishi-Nippon City Bank....


The Tobin Tax is mentioned, welfare economics, the market is never right, sounds like daily price setting for stocks and commodities, strict qualifications for market participants, etc.
 
Quote from lemeeeplay:

We can always trade forex as last resort because it is very difficult to tax. Worst comes to worst, we could open up an offshore account and trade aboard.
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The French government have been lobbying for a transaction tax for years on FX.
 
It seems everyone is worrying about nothing right now. This was an op ed piece only, its not being talked about in the financial community at all if you try and search for it. And if you read the Tobin Tax has been shot down numerous times espcially by our government. I know our government is stupid right now, but they would not take away substanial revenue from the banks they just bailed out since the gov is some of their biggest share holders now. Speculators count for a majority of the revenue for lots of the big firms. So this is just ET bringing this up over a little article of someone trying to get there 15 mins of fame. Nowhere on real financial websites is this being mentiones as a worry.
 
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