Tax on Trades Should Be Part of Rescue Plan, Some Democrats Say

Quote from seasideheights:

In a letter sent late yesterday to House Speaker Nancy Pelosi, 16 Democrats asked her to ensure any rescue legislation include a ``transaction tax'' on all U.S. stock trades and on other types of trades, such as credit default swaps, options and futures. They are proposing the tax would be at a rate of one quarter of one percent on all trades.

``The same Wall Street speculators and investors who are principally responsible for having caused this avoidable financial crisis and profited from it must now be required to pay for it, not U.S. taxpayers,'' according to the letter, which was signed by Representative Peter DeFazio, an Oregon Democrat, and Representative Pete Stark, a California Democrat.


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5UhcbI4jecU
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LOL Ya gotta love the stupidity of it all.... PDT "rules" to protect the "little" guys (from themselves) from playing the game cuz they are not smart enough, or they don't have enough money, or they don't know what the hell they are doing. Oh, and of course to eliminate market volitility caused by all the daytraders, we bad.

Followed by the advice of, " let the "professionals" help you to invest your money, they know what they are doing, they are better suited to manage risk." (cough cough)

Then along comes the GREAT idea to let John Q Public manage their own SS funds.

Then the fall out from the CDS created by the MBA masterminds (those professionals, remember?), who lent too much money to overextended John Q's who was presumably not smart enough to handle his own money, but hey give him a bunch of money for a nice house..... WHY oh WHY didn't I let LEH or BS or some of those OTHER, professional, more able people take care of my money????

And now tax trades? (and of course the profits from those trades, should there be any) Money for NOTHING..........

Tweedle Dee and Tweedle Dummer..........
 
I calculate that an ES contract based on roughly $60,000 would be $150 each way

$300 divided by the current transaction expense of 5 dollars means transaction expense increased by a factor of 60 times
 
I suspect it wouldn't apply to futures but you can't under estimate the stupidity of Washington. If this were attached to the bill the market would cease to exist. It will never fly.

Let's do a little math. 1000 shares of AAPL at today's close is $263,860 (both ways) of stock value * .0025 = a tax of $659.65. The day trader would never be able to offset the tax with profits and the buy and hoper will only try this once.

If Washington is stupid enough to pass this part of the bill it will quickly be repealed. Rest well tonight traders. It ain't happening.

Quote from swtrader:

I calculate that an ES contract based on roughly $60,000 would be $150 each way

$300 divided by the current transaction expense of 5 dollars means transaction expense increased by a factor of 60 times
More...
 
it is not a big deal.

all trading will move to dubai - they try to attract as much trading as possible anyway.
us will lose hundred thousands of jobs in finance, i.e. huge tax revenues. new york will become vacated - the house prices will go lower.
nobody will lend america anymore so dollar will go lower, inflation higher.
chavez will send all oil to china so gasoline will be over $10 - maybe higher because government will start to tax it the same way europe does.
smart people will stop coming to america because they will not get paid enough and big brother will listen to their every f#cking phone call. the best high profile jobs will consequently leave us. the unemployment could be 20% but it will likely be only around 15% because mexicans will flee back to mexico - so there will be plenty of dish-washing opportunities.

god bless america
 
Exactly! Perhaps someone should call Washington and tell them what a wonderful plan this would be while I call an Asian Broker to open my account. LOL. What a super idea! "New York would be vacated." Ain't that the truth. What a death blow to America this would be.

Quote from dhpar:

it is not a big deal.

all trading will move to dubai - they try to attract as much trading as possible anyway.
us will lose hundred thousands of jobs in finance and huge tax revenues. new york will become vacated - the house prices will go lower.
nobody will lend america anymore so dollar will go lower, inflation higher.
chavez will send all oil to china so gasoline will be over $10 - maybe higher because government will start to tax it the same way europe does.
smart people will stop coming to america because they will not get paid enough and big brother will listen to their every f#cking phone call. the best high profile jobs will consequently leave us. the unemployment could be 20% but it will likely be only around 15% because mexicans will flee back to mexico - so there will be plenty of dish-washing opportunities.

god bless america
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Here's the worrisome part about this bill though. Someone will explain what a mess this will cause and the light bulb will come on and they will get the customary reponse of, "Oh." A second or two after that it will get followed up with, "Well, why don't we just tax them bastards a flat fee of..."

We're gonna pay something. All you elitetraders who sold anything short this past year are all screwed. You bastards should have known better

:mad:
 
They already tax the shit out of trades....some of us have paid in hundreds of thousands of dollars over the years, perhaps this has already been pointed out!
 
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