Does anyone else feel like an FTT is an attempt to get the little guy out of the room, in the same way they kicked the little guy out of the room when they created the pattern daytrader rule? The pattern daytrader rule required that you must have $25,000 in your account, otherwise you can't daytrade. All the little guys had to stop daytrading when that rule came out.
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Kamala wants a 0.2% transaction tax
- Thread starter Math_Wiz
- Start date
A FTT will incentivize (essentially force) the short term trader to become an investor...longer term holding periods. Also will likely widen spreads (btwn bid and ask), reduce volume, and spell the demise of commission free trading. The landscape will be very different.
%%...... but the left will completely shut the economy down... Anyone supporting them has absolutely no economic understanding whatso ever
So make sure those losers live their name, this Nov.
That tax would not hurt me, but i'm 100% against it/ higher taxes mean more control. The gov has goofed up health care enough+ needs a good rebuke @ the polls.
And what will the govt get out of it?A FTT will incentivize (essentially force) the short term trader to become an investor...longer term holding periods. Also will likely widen spreads (btwn bid and ask), reduce volume, and spell the demise of commission free trading. The landscape will be very different.
%%And what will the govt get out of it?
Nothing;
the losers trying that tax= lose to much to do that tax.
Muni bonds are tax free; tax free to help with volume......................................
Under every proposed FTT to date, US Govt Bonds would be exempt from the tax. Thereby enabling the Gov't to sell bonds, and creating an incentive for individuals to buy them.
It seems unlikely that trading would shift to Govt Bonds from stocks simply to avoid a FTT.
Does anyone know of a good source for short term T-Bond trading signals? Any very next trading day focused signals. Thanks.
It seems unlikely that trading would shift to Govt Bonds from stocks simply to avoid a FTT.
Does anyone know of a good source for short term T-Bond trading signals? Any very next trading day focused signals. Thanks.
A FTT will incentivize (essentially force) the short term trader to become an investor...longer term holding periods. Also will likely widen spreads (btwn bid and ask), reduce volume, and spell the demise of commission free trading. The landscape will be very different.
Exactly. Markets would become parking lots with expectation of return of principal only. Hmmm, sounds familar. Buy and hold will be the next big thing in financial planning. LOL. Hmmm, sounds familiar too.
And don't forget the wealth tax being tossed around has nothing to do with gains or losses, only nominal value of total wealth, every year.
In return for the "necessity" of a FTT, the little guy might get free quotes, fees of which are being studied and under review right now! Hmmm.
If the Dems take the Senate, the filibuster is gone baby, gone...if its revenue neutral, it can be 50 + 1 but can be done only once per year. if its extra tax, it requires 60. This definitely requires 60
Obama’s Call to Abolish Filibuster Puts Further Spotlight on the Tactic
Looks like New Jersey wants to tax trades processes in it's state and some in New York state want to bring back the state's Stock Transfer Tax. See my thread here:
https://www.elitetrader.com/et/thre...g-financial-transactions.349518/#post-5192308
https://www.elitetrader.com/et/thre...g-financial-transactions.349518/#post-5192308
http://www.businessinsider.com/swed...nancial-transaction-tax-wont-work-2011-9?IR=T
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.
In Belgium the biggest broker Binckbank said that in all European countries where they are active, volume went up, but in Belgium it went more than 10% down after introduction of a speculation tax. The paid stock exchange taxes fell by 55%. The two taxes together fell 29% short of the stock exchange tax alone in the last year.
So raising taxes or introducing new taxes diminished the total amount of taxes collected. Even existing taxes fall because traders went elsewhere. Like predicted (Laffer curb). The tax was quickly abolish later.
Documentation on FTT in Europe; will be similar to American FTT.
Prognoses say turnover in stocks and bonds will go -15%
Turnover in derivatives and financial bets will go -75%!!!
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.
In Belgium the biggest broker Binckbank said that in all European countries where they are active, volume went up, but in Belgium it went more than 10% down after introduction of a speculation tax. The paid stock exchange taxes fell by 55%. The two taxes together fell 29% short of the stock exchange tax alone in the last year.
So raising taxes or introducing new taxes diminished the total amount of taxes collected. Even existing taxes fall because traders went elsewhere. Like predicted (Laffer curb). The tax was quickly abolish later.
Documentation on FTT in Europe; will be similar to American FTT.
Prognoses say turnover in stocks and bonds will go -15%
Turnover in derivatives and financial bets will go -75%!!!