transaction tax mathematics and end of day trading

[taclander]

Quote from PocketChange:

Gonna be a lot of futures trading.

Unless this is a different bill proposal, it covers futures and options also. The one I read earlier this year was from Congressmoron Defazio from Oregon. I called and blasted his office even though I'm not in his state. I also called my Congressman.

 

[MrPowerBallad]

Quote from taclander:

Unless this is a different bill proposal, it covers futures and options also. The one I read earlier this year was from Congressmoron Defazio from Oregon. I called and blasted his office even though I'm not in his state. I also called my Congressman.

Defazio's bill states .25%, the newest number is .01%, and even Dean Baker mentioned yesterday that futures would have to be more around .001% (one hundredth of a percent -- still a lot for futures) -- just an FYI

 

[zdreg]

Quote from Kicking:

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

exactly. you won't be exempt but goldman will.

 

[IanMacQuaide]

Quote from MrPowerBallad:

Defazio's bill states .25%, the newest number is .01%, and even Dean Baker mentioned yesterday that futures would have to be more around .001% (one hundredth of a percent -- still a lot for futures) -- just an FYI

On losing trades as well.
Many shops and traders will just stop trading US mkts. Of course then the AFL-CIO will outlaw internet trading.

 

[the1]

The original bill included all derivatives in the tax and you have to pay the tax on the FULL contract amount. You buy one contract at 1000 and they will tax you on $50,000.

Quote from PocketChange:

Gonna be a lot of futures trading.

 

[the1]

Definitely! They have their lawyers working on it already. If you follow the history of other countries who did this there was always some method of avoiding the tax, such as trading "off-exchange." Joe Trader will not have access to that kind of execution. GS will not pay a dime toward this tax. It will be Joe Sucker who foots the bill but it will be sold as a "tax on GS."

Quote from MrDODGE:

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

 

[gkishot]

Quote from the1:

The original bill included all derivatives in the tax and you have to pay the tax on the FULL contract amount. You buy one contract at 1000 and they will tax you on $50,000.

Spread traders will be put out of business right away.

 

[PocketChange]

Quote from the1:

The original bill included all derivatives in the tax and you have to pay the tax on the FULL contract amount. You buy one contract at 1000 and they will tax you on $50,000.

Time to move to Cuba... Castro doesn't seem all that bad of a leader right now.

Simple and fairest solution would be to add sales tax or federal excise tax to just the exchange fees. ie. 10%.

Futures would go from $4.50 RT to $4.99
equities from $1 to $1.10
Options from $1.50 to $1.65

Simple to collect, regulate and enforce.

 

[clacy]

Quote from PocketChange:

Time to move to Cuba... Castro doesn't seem all that bad of a leader right now.

Simple and fairest solution would be to add sales tax or federal excise tax to just the exchange fees. ie. 10%.

The "fairest solution" would be for the government to stay the hell out of our lives/pockets and quit redistributing our wealth.

He is an idea for the Federal government (Dems and Republicans alike)............ quit spending so much money.

Promote a change in culture among the poor, rather than trying to destroy those that have succeeded in life and redistributing money to deadbeats.

 

[sophiekay]

Another person to contact:
Adair Turner of the Financial Services Authority in the UK. He is proposing a Global Tobin Tax. I just gave him a call. Let his office know you are calling from the US.

The number if calling from the US is... 011 44 20 7066 1000