WSJ today: Democrats Weigh Tax on Financial Transactions

[euclid]

Putting evil speculators out of work is a vote winner. So don't complain to your representatives about your personal circumstances if this tax were to be enacted. That may actually encourage them to do it.

Write as an informed industry insider pointing out the detrimental effects for the whole country. Also point out that if the tax rate is set at the high levels being discussed it will mostly like lead to a net loss of tax revenue. You might like to suggest a level of transaction tax that would not destroy the market. It will probably still fall on deaf ears but it costs nothing.

 

[Occam]

Quote from Random.Capital:

This isn't even theoretically possible.

Why's that? Aren't all US Equity Options transacted through the exchanges (i.e. no internalization)?

 

[drukes1234]

The people that should be contacted in addition to congressmen and senators would be the big retail brokerage houses like Etrade, Interactive Brokers, Ameritrade etc etc, they I'm sure have far more pull than anyone on this board and this tax absolutely ends their business (and ours)

 

[Sodajerk]

Quote from drukes1234:

The people that should be contacted in addition to congressmen and senators would be the big retail brokerage houses like Etrade, Interactive Brokers, Ameritrade etc etc, they I'm sure have far more pull than anyone on this board and this tax absolutely ends their business (and ours)

Which leads to the obvious question, why aren't we hearing more noise from these companies already?

If, as some might suggest, the big retail brokers have "certain information" which makes their protesting this bill either unnecessary or pointless, what exactly is it that they all know and we (and the financial press) haven't heard about?

 

[rsikit]

My guess is they are doing things behind the scenes but also waiting till this really gains traction in a real sense, not just an article here or there like it has been. The bill thats been in the house since Defazio put it in there last Feb I believe, is probably not to much a worry for these firms yet. Since he has basically put forth the same bill every year since 2000, my guess is they do not take Defazio seriously until he gets a serious backer of the bill. My 2 cents.

 

[drukes1234]

Heard this today, "House and Ways Means Committee Spokesperson; Financial transactions tax not being consdiering by tax writing segment" -- it's a good short term positive but the war has just begun, we have a lot of work to do as this will continue to come up and be pushed.

The real problem is if Pete Stark takes over for Charlie Rangel in the Ways and Means committee as Pete co-wrote the transaction tax bill with DeFazio. Contact the big firms, get them fighting, contact your reps.

 

[MohdSalleh]

although i know this will affect me financially i am secretly hoping this will pass as the capital flight will surely bring down the Obama presidency

 

[drukes1234]

Quote from MohdSalleh:

although i know this will affect me financially i am secretly hoping this will pass as the capital flight will surely bring down the Obama presidency

It can't/won't be done unilaterally so if it happens it will be applicable in every country and there will be no where for capital to flee to.

 

[rsikit]

Drukes where did y hear about the tax writing segement not considering the tax?

 

[drukes1234]

Heard it about an hour ago on Trade the News and Huckman mentioned it on CNBC. There will be a segment on CNBC during Power Lunch on the tax.