Kamala wants a 0.2% transaction tax

[DevBru]

Belgium has a 0,35% transaction tax on stock transactions and it is absolutely ridiculous.

You pay 0,35% on the $ amount you purchase the stock for and 0,35% of the $ amount you sell the stock for.

It is near impossible to be profitable as a day trader after this tax.

 

[zdreg]

I'm against an FTT, but there are a few things to keep in mind here:

• This article is just quoting her platform from a year ago when candidates say all kinds of things to see what sticks.
• Outside this site I see no mainstream discussion of an FTT. In 2008 there was a lot more serious discussion that never resulted in anything
• We already have a 0.002% tax on option sales (as well as stock sales)

Do you know the difference between .002 and .00002? It is 100x

 

[lindq]

Let's be honest the right is terrible but the left will completely shut the economy down... Anyone supporting them has absolutely no economic understanding whatso ever

Evidently you are too young to recall the devastation of the economy in 2008. Whatever your politics, the fact is that Obama/Biden put together a team that cut unemployment in half and put us on an upward trajectory.

So to infer that the "left" will shut down the economy is simply a stupid statement.

 

[vanzandt]

200 shares of amzn is $600K. So we'll be taxed $1200?! For a daytrade?
$60 for 10 shares?
Even on a minimum $25K PDT account, If you use max DTBP on one trade, that's $200. Right?

Baron.... you better sell this website while you still can.

 

[Overnight]

It would put all of us out of business. Derivative trading (futures) would be 99.9% dead. Each ES trade would set you in the hole 6 points or more from that start (someone else can do the exact math). Impossible to overcome this.

K, so the exact math goes something like this.

You make 1 ES point on 1 contract. $50. 50 * .002% = .001.

So for each contract traded where you make a point, you are taxed 1/10th of one penny. What is the problem?

 

[elt894]

Do you know the difference between .002 and .00002?

Yes, she called for .00002 on derivatives, which I was pointing out we already have (at least for options). I'm aware 0.2% on stocks is much higher and agree it's a dumb idea.

 

[DevBru]

K, so the exact math goes something like this.

You make 1 ES point on 1 contract. $50. 50 * .002% = .001.

So for each contract traded where you make a point, you are taxed 1/10th of one penny. What is the problem?

Transaction tax isn't calculated on profit but on the $ value of the purchase.

 

[wiesman02]

K, so the exact math goes something like this.

You make 1 ES point on 1 contract. $50. 50 * .002% = .001.

So for each contract traded where you make a point, you are taxed 1/10th of one penny. What is the problem?

ok so my original math was messed up, but if you read some other countries experiments with transaction tax, some used the notional value and some used the "premium value". Don't know what the premium value is, but notional value would drive us all out.

 

[2rosy]

no issue. just trade a non-us market. you are aware there are markets all across the planet with a multitude of products?

 

[BlacknBlue]

no issue. just trade a non-us market. you are aware there are markets all across the planet with a multitude of products?

US stock market most liquid and easiest to trade... And uh timezones...