House Democrats reintroducing financial transaction tax with AOC as a co-sponsor

[gkishot]

Why tax only Wall Street transactions, every business transaction should be taxed then.

 

[zdreg]

i

Why tax only Wall Street transactions, every business transaction should be taxed then.

step by step socialism.

 

[canoe]

Why tax only Wall Street transactions, every business transaction should be taxed then.

b/c Wall Street is the big boogeyman that is easy to blame.

they're certainly not blameless but Dems are going about it the wrong way.

 

[zdreg]

b/c Wall Street is the big boogeyman that is easy to blame.

they're certainly not blameless but Dems are going about it the wrong way.

blame for what?

 

[schweiz]

Also if they tax the transactions, the amount of trades will drop drastically so their forecast of tax revenue is wildly over inflated. Does anyone in Congress have a finance or intelligent background?

This was already done in EU. The result was always a loss of income for the government. People changed their behavior and investments due to taxation. So the expected income that was based on the actual volume of transactions was way off in reality as volume shifted to non taxed products or even to other countries.

 

[schweiz]

if this passes, which seems likelier by the day, i'd have to imagine more and more US traders would give up citizenship and move to a country like, say the UK.

even if as UK residents they'd still have to pay the FTT for US stocks/futures, they could trade foreign stocks/futures and forex with no FTT.

i mean, a 0.1% rate is basically the death of retail trading, period.

to give some perspective, trading just ONE ES contract would incur as tax of around $140.

I bet the Gulf States would then take over the US stockmarkets. They have the money and are looking for new economical activities once the oil is finished. The financial center would move to Dubai, Kuwait, UAE.
And the economical damage will stay in the US.

In Belgium exist an exchange fee and since 2016 a speculation tax. Since the introduction of the speculation tax, paid stock exchange taxes fell by 55%. The two taxes together fell 29% short of the stock exchange tax only in the last year.
So raising taxes or introducing new taxes diminished the total amount of taxes collected. Like predicted (Laffer curb).

Anders Borg, Sweden's finance minister, has told that a European financial transaction tax won't work, citing his countries own experiment with the tax.

When Sweden began taxing financial transactions in the 1980s, "between 90%-99% of traders in bonds, equities and derivatives moved out of Stockholm to London," Borg said.
"The impact was basically that we did not get any tax revenue. It brought in very little tax money while moving most of the businesses outside of Sweden.
"We abandoned [the tax] because it was a very, very bad functioning tax."
Sweden implemented its tax in 1984. It was a 0.5% tax on a purchase or sale of an equity security. It was doubled in 1986 and subsequently lowered. In 1991 the tax was abolished following disappointing revenues.

 

[SPYAlgoTrader]

schweiz: good writeup, thanks.

 

[SumZero]

Sounds like someone was doing an internship with the idiots of the european soviet union where this kind of stupid ideas are mega popular.

 

[zdreg]

Sounds like someone was doing an internship with the idiots of the european soviet union where this kind of stupid ideas are mega popular.

Russia has a flat tax of 18%. . Sum zero for your post sounds about right.

 

[JigsawTrading]

OK - let's all move to Eurex. I can't see any other outcome, personally.

Even better if the EU do the same thing - it'll all be in London!