WSJ today: Democrats Weigh Tax on Financial Transactions

shfly · Oct 11, 2009

Quote from JOSEF:

I'm glad to hear about Schumer.

If people have a chance, try calling them instead of e-mailing them. I have been told it has a bigger impact.

I agree, calling is better! I sure will follow up with calls if this gets further traction.

Sen. Schumer is a key player! Let's hope he stays on our side.

lindq · Oct 11, 2009

Quote from Random.Capital:

Why would this be a bad thing? Daytrading provides zero meaningful economic activity - who cares if it dies?

To say that daytrading provides zero economic activity is beyond stupid.

Any type of trading generates commissions and fees, hence employment for thousands of support personnel throughout the financial industry. Data providers, software vendors, IT specialists, brokers, managers, admin support, etc. etc. etc.

They in turn support their families and generate business in their communities.

To follow your (lack of) logic, what economic activity do you support when you sit on your ass and watch television, surf the internet, or even take a vacation? (The answer is, plenty.)

Random.Capital · Oct 11, 2009

Quote from lindq:

To say that daytrading provides zero economic activity is beyond stupid.

It doesn't provide food, it doesn't create tangible products, etc etc etc.

Daytrading is essentially paper-shuffling, and is about as meaningless an economic activity as we have in our modern society.

I don't object to it existing, but I sure am going to object to it being touted as somehow important or worthy of special protection.

JOSEF · Oct 11, 2009

Quote from Random.Capital:

It doesn't provide food, it doesn't create tangible products, etc etc etc.

Daytrading is essentially paper-shuffling, and is about as meaningless an economic activity as we have in our modern society.

I don't object to it existing, but I sure am going to object to it being touted as somehow important or worthy of special protection.

Well, neither does the gambling in Las Vegas.

Or how about pro sports?

And just because a company produces a tangible product doesn't mean it is beneficial for society. Cigarettes comes to mind.

gkishot · Oct 11, 2009

Quote from Random.Capital:

It doesn't provide food, it doesn't create tangible products, etc etc etc.

Neither do teachers, firefighters, real estate brokers, showbiz people etc.

Daytrading is essentially paper-shuffling, and is about as meaningless an economic activity as we have in our modern society.

That's because you don't understand how important the speculators are for the free markets to function properly. Who you think is going to invest in a company at IPO if there are no buyers to sell the stock to later on.

traderdave72 · Oct 11, 2009

They tried to do this in the Forex market years ago. I hope for the sake of my family that this does not happen because it would put the retail trader right out of business. God Damn Democrat's.

makloda · Oct 11, 2009

Quote from Random.Capital:

Why would this be a bad thing? Daytrading provides zero meaningful economic activity - who cares if it dies?

Low transaction costs (fees, taxes and spreads) and market depth (liquidity) are huge economic benefits.

skylr33 · Oct 11, 2009

Quote from JOSEF:

By the way, if Sen. Schumer is indeed against this, then it will not be adopted as long as all of the Republicans in the senate stay united in their opposition to it. Thanks to Schumer they would have enough votes to filibuster it.

Agreed!!! If Schumer is not in favor of it, we are fine. Also, there are a handful of moderate conservative Democratic Senators that would not be in favor of a transaction tax. Plus, there would not be a single Republican Senator that supports it. In addition, with the 2010 elections coming up soon, the GOP should add a few senate seats to their side, which will make it difficult, if not impossible for these asshole Democrats to push the tax forward. In the end, I believe we are fine.

Sodajerk · Oct 11, 2009

Quote from jficquette:

They will exclude gay sex though so that most of them wouldn't have to pay it.

This tax bill does indeed exclude gay sex in a manner of speaking, namely what GS will do to you and your day trading business with all the exemptions they'll be getting if this cheered-by-CNBC bill passes.

And just to review: the tax revenue from a sector put out of business by the taxing of it (e.g. day trading) is nil, so that's not the motivation here by "damn Democrats" or anyone else.

listedguru · Oct 11, 2009

Quote from skylr33:

Agreed!!! If Schumer is not in favor of it, we are fine. Also, there are a handful of moderate conservative Democratic Senators that would not be in favor of a transaction tax. Plus, there would not be a single Republican Senator that supports it. In addition, with the 2010 elections coming up soon, the GOP should add a few senate seats to their side, which will make it difficult, if not impossible for these asshole Democrats to push the tax forward. In the end, I believe we are fine.

Yeah the senate would be the one to crush this bill if it ever got that far. The house is kind of like JV sports back in highschool. It's for those that can't make the real team (and make the big desisions

-Guru