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

[Susannah]

I was thinking about starting to prepare to take the LSAT. Seems like if they keep increasing the amount of laws and taxes, the only profession they'll eventually need more of is lawyers.

Or, perhaps I could manufacture children's wooden arrows? I hear there's an important tax break for them added into the bill

 

[Angrycat]

Quote from seasideheights:

To make the markets less volatile while collecting additional revenue.

Liquidity will be reduced even with these exemptions. Reduced liquidity is positively correlated with MORE not less volatility.

Stocks will be less liquid, but more volatile. Good for market makers, sucks for everyone else.

 

[Angrycat]

Quote from Eric215:

I jUnfortunately right now us traders as a group are mostly seen as greedy, selfish, non-contributing members of society and that we are to blame for this economic mess.

We'll see how much they think that when they have to cross a 2% spread to trade in addition to this little tax idea.

Listen, all. I wouldn't get my knickers in a twist over this. De Fazio is an idiot with moronic delusions of grandeur so common to the average political muppet. Last night, the hippie senator from Vermont (the same state that gave us Howard Dean - YEEEWAAAA!), proposed a 10% tax surcharge for anyone making over $500K individually or $1Mill for married couples. It didn't pass - by a long shot.

Raising taxes in a time when the economy may go into a full fledged depression is something even the halfwits in congress understand is counterproductive. So, I don't think anyone - including IB (which will lose business as it doesn't support B/Ds and JBOs) - is taking this BS seriously.

Our biggest problem is the inflation this bailout is going to cause. That's what we should be worried about.

 

[Euler]

Quote from TraDaToR:

"Further, the tax would apply equally to foreign transactions of U.S.
nationals and corporations,"

Good luck guys, they're really trying to screw everyone of you... Glad I am not american for one time... This is fucking crazy... You need to act against those fuckers...

Note that this is part of a liberal think tank's paper, not any US politician's proposal. But if such a clause were to get in (especially if there's no exemption for "professionals"), it could put US traders at a massive disadvantage worldwide, particularly in currencies and globally traded commodities, such as oil and gold. CME, among others, would have to shrink to a fraction of its size under such provisions.

 

[Jachyra]

If they really want to recoup the cost of the bailout from those who are mostly responsible, why aren't they talking about levying a fee against the people who just walked away from their mortgages and let their homes get foreclosed on? Perhaps they should be thinking about putting them into the top tax bracket regardless of income for some period of time. I would suspect that would yield a lot more money than some transaction tax. Oh, but I forgot, that wouldn't play as well with voters.

I just love the double standard... speculating in the financial markets is evil but for some reason speculating in the real estate market warrants no mention whatsoever.

 

[Angrycat]

Quote from Jachyra:

If they really want to recoup the cost of the bailout from those who are mostly responsible, why aren't they talking about levying a fee against the people who just walked away from their mortgages and let their homes get foreclosed on? .....

I just love the double standard... speculating in the financial markets is evil but for some reason speculating in the real estate market warrants no mention whatsoever.

Totally agree. And if we're going after people who directly caused this crisis, how about a clawback on the bribes Fannie & Freddie has paid to congressmen over the decades to pay for this? That would be a nice chunk of change. How about raising the tax rate on every member of congress to pay for this.

We need a referendum on this. I bet it'll pass.

 

[Eric215]

Quote from Angrycat:

We'll see how much they think that when they have to cross a 2% spread to trade in addition to this little tax idea.

Well stated. This is the problem with the politicians here, they don't realize that we (the smaller traders) keep the big firms in check and create a more efficient market for everyone. Without us nipping at their heels and over bidding them these market makers would have a field day! Maybe I should look into what it takes to start a market making firm because if this ever does pass that would be a great business opportunity.

 

[Angrycat]

Quote from seasideheights:

To make the markets less volatile while collecting additional revenue.

Liquidity will be reduced even with these exemptions. Reduced liquidity is positively correlated with MORE not less volatility.

Stocks will be less liquid, but more volatile. Good for market makers, sucks for everyone else.

 

[Angrycat]

Quote from Eric215:

Well stated. This is the problem with the politicians here, they don't realize that we (the smaller traders) keep the big firms in check and create a more efficient market for everyone. Without us nipping at their heels and over bidding them these market makers would have a field day! Maybe I should look into what it takes to start a market making firm because if this ever does pass that would be a great business opportunity.

It takes at least $1million of capital, start-up costs and a prime broker willing to take you on as a customer (expect at least 3 months of due diligence by your potential prime broker). Your capital is locked up for a year and you get copious amounts of regulatory hassle and compliance. But, hey! If they insist on making it worth your while, it may be worth it.

More market participants make markets more efficient. there shouldn't be such enormous barriers to entry in a public market.

 

[cstfx]

What fee recoupment program was added to house bill? Pelosi just mentioned it.