I cannot find any trace of the mentioned FTT in this document. Should it not be there?
Kamala wants a 0.2% transaction tax
- Thread starter Math_Wiz
- Start date
I cannot find any trace of the mentioned FTT in this document. Should it not be there?
I could definitely be mistaken and I havent done enough research on this issue, however IMHO this would not only destroy HFT's which the proposers seem to want (and the obvious liquidity they are providing) but also likely destroy trading in general (definitely the little guys) as well as put brokers and funds out of business.
IMHO this isnt the most brilliant idea ever, although its a great campaign populist angle, a much more intelligent approach would be to raise the tax for people who are actually making money (not that I am for that) not destroy the entire market.
How exactly would this not destroy the stock market?
Who is going to put on risk shorting companies when their bad behavior makes the headlines?
Who is going to buy your stock when you want to sell? (remember no more HFTs and Funds) IF THERE IS LESS DEMAND WHAT HAPPENS TO THE EXCESS SUPPLY ?? IF THE TRANSACTIONS ARE REDUCED BY 30,50,75% HOW MUCH TAX ARE YOU GOING TO COLLECT?
Again, I am a trader so yes this would effect me personally so bias should be obvious but please someone explain to me how this would benefit society? , maybe you can change my mind.
Also, from my brief research I am unable to find out how serious this is, not sure if its just a campaign slogan or if destroying the greatest stock market in human history is actually on their agenda.
I was able to find a few pieces for us to somewhat be able to gauge the sentiment...
A bill called "Wall Street Tax Act of 2019", was introduced to the House I am far from certain how this process works and I havent been able to find any information on it being even voted on in the House. I am assuming it didnt pass the first phase and that according to the article "moderate Democrats" didnt approve it and therefore it didnt move to the next phase??
https://www.politico.com/story/2019/03/08/house-democrats-reject-transaction-tax-1255624
From another article,
In the article it claims (if I am not mistaken) the main reason is to get HFT's under control. But if anything I would argue HFTs dont hurt buy & hold investors on the contrary it helps them actually have a buyer at very favorable prices. It may hurt short term traders but even that could be argued as again they do provide lots of liquidity as well.
Also, from the article, I believe a gentleman from the Tax Policy Center,
" quoted Jean-Baptiste, Louis XIV’s finance minister, in trying to explain the conundrum surrounding FTTs: “The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the smallest possible amount of hissing.”
So it seems like some bright minds realize they cant keep getting the eggs if they eat the plucking chicken :O)
https://www.vox.com/policy-and-poli...schatz-financial-transaction-tax-stock-market
I am not sure how serious this idea is, and even reading posts here about it being a sure thing coming, But of course politicians are representatives of our society so it could continue to move further left, so far so that their hatred of Wall Street they may get to a point where they dont even care if they destroy the markets??
Again, I am not sure how this would benefit society, if someone is kind enough to inform me I would appreciate it. Otherwise, my stance is this is bad, very very bad. and although I am sure my officials need me to donate and campaign for them more than they need my opinions I will make sure to let them know how I believe this is bad, very very bad.
IMHO this isnt the most brilliant idea ever, although its a great campaign populist angle, a much more intelligent approach would be to raise the tax for people who are actually making money (not that I am for that) not destroy the entire market.
How exactly would this not destroy the stock market?
Who is going to put on risk shorting companies when their bad behavior makes the headlines?
Who is going to buy your stock when you want to sell? (remember no more HFTs and Funds) IF THERE IS LESS DEMAND WHAT HAPPENS TO THE EXCESS SUPPLY ?? IF THE TRANSACTIONS ARE REDUCED BY 30,50,75% HOW MUCH TAX ARE YOU GOING TO COLLECT?
Again, I am a trader so yes this would effect me personally so bias should be obvious but please someone explain to me how this would benefit society? , maybe you can change my mind.
Also, from my brief research I am unable to find out how serious this is, not sure if its just a campaign slogan or if destroying the greatest stock market in human history is actually on their agenda.
I was able to find a few pieces for us to somewhat be able to gauge the sentiment...
A bill called "Wall Street Tax Act of 2019", was introduced to the House I am far from certain how this process works and I havent been able to find any information on it being even voted on in the House. I am assuming it didnt pass the first phase and that according to the article "moderate Democrats" didnt approve it and therefore it didnt move to the next phase??
https://www.politico.com/story/2019/03/08/house-democrats-reject-transaction-tax-1255624
From another article,
In the article it claims (if I am not mistaken) the main reason is to get HFT's under control. But if anything I would argue HFTs dont hurt buy & hold investors on the contrary it helps them actually have a buyer at very favorable prices. It may hurt short term traders but even that could be argued as again they do provide lots of liquidity as well.
Also, from the article, I believe a gentleman from the Tax Policy Center,
" quoted Jean-Baptiste, Louis XIV’s finance minister, in trying to explain the conundrum surrounding FTTs: “The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the smallest possible amount of hissing.”
So it seems like some bright minds realize they cant keep getting the eggs if they eat the plucking chicken :O)
https://www.vox.com/policy-and-poli...schatz-financial-transaction-tax-stock-market
I am not sure how serious this idea is, and even reading posts here about it being a sure thing coming, But of course politicians are representatives of our society so it could continue to move further left, so far so that their hatred of Wall Street they may get to a point where they dont even care if they destroy the markets??
Again, I am not sure how this would benefit society, if someone is kind enough to inform me I would appreciate it. Otherwise, my stance is this is bad, very very bad. and although I am sure my officials need me to donate and campaign for them more than they need my opinions I will make sure to let them know how I believe this is bad, very very bad.
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If the taxes increase on your gasoline, do you stop driving your car? No. You suck it up and pay the higher tax because you need to drive your car. Drivers gonna' drive.
If there's an extra tax on your trades do you stop trading? No. Because you need to trade. Traders gonna' trade.
well if I have to pay $170 on a roundtrip on 100 pieces AAPL just in the tax before actually being up, its not worth it to me putting on that risk. Maybe a trade will come along that I'll be willing to eat the cost upfront or maybe Ill find somewhere else to risk my money, most likely for me the latter
And that is where it does not make sense and all falls down in logic. Without details we're all being hysterical.
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My math may be off but It would be around $5 each in and each out so around $50. Win or lose
At this point they don't even wanna "tax the rich" anymore just cut all our balls off for even daring to play the game :0)
I'm just kidding I did a little homework and wanted to share with the forum, at least for now I don't think this is "likely" . from the first article and even the second it may just be a campaign slogan. But we never know...
Am interested if someone could explain how this would be good for society / markets ?
At this point they don't even wanna "tax the rich" anymore just cut all our balls off for even daring to play the game :0)
I'm just kidding I did a little homework and wanted to share with the forum, at least for now I don't think this is "likely" . from the first article and even the second it may just be a campaign slogan. But we never know...
Am interested if someone could explain how this would be good for society / markets ?
$2300 + $2370 = $4670.
$4670 x 1% = $46.70
$46.70 / 5 = $9.34
$9.34 x 5 (round trips per day) = $46.70.
Your FTT would approach $50/day, whether profitable or not.
Photonic energy from the sun, the air you breath and what ever else pulls money out of your pocket to keep someone else's agenda afloat.
Akuma