transaction tax mathematics and end of day trading

[zdreg]

at 1/10% you will be paying a 25% tax. if u turn over your capital once per day.
if u turn it over 2x you will be pay a 50% tax
if u turn it over 4x you will be paying a 100% tax on your capital.

eg. .001 x 250(# of trading days) x 1 (number of turnovers) = .250
eg .001 x 250 x2 = .500
eg .001 X 250 x 4 = 1

eg if u have $100,000 in capital u will pay between $25,000 and $100,000 in transaction tax before any profit or loss.

http://www.rallycongress.com/no2tradertax/

 

[gkishot]

Minimum annual transaction tax with one turnover per day ( 1 buy and 1 sell) and $100,000 of capital is:

$100,000 * 0.001 * 2 * 250 days = $50,000

 

[zdreg]

my assumption that it would only be imposed only on a closing transaction will likely be proven wrong. thx.

 

[gkishot]

Quote from zdreg:

my assumption that it would only be imposed only on a closing transaction will likely be proven wrong. thx.

My assumption is that the transaction tax will be imposed on every transaction regardless of it's type. Which is probably what it is.

 

[Kicking]

well then Goldman's super computer is out of business, they won't allow that !

 

[Illum]

I was the 644th person from New Jersey to sign this petition.

We might have to do better than that, lol

 

[sophiekay]

Also, call the AFL-CIO (202) 637-5000. Let the union know this is not a good idea.

 

[MohdSalleh]

i guess i wouldnt mind going bankrupt if i see obama lovers living next to me on the streets

 

[PocketChange]

Gonna be a lot of futures trading.

 

[MrDODGE]

The banks will game the law or find some way around it without the government finding out.