Posted on 04/16/2011 10:16:36 PM PDT by AmericanDave
What I am talking about is the Constitutional right to own property, enjoy it safe from unreasonable search and seizure, and the limits upon the powers granted to the Federal Government. I am talking about the right to deny people like you the ability to use arbitrary and discriminatory means of confiscating the property of other people just to spend on your own Unconstitutional spending sprees. You say you want a "FAIR" system of taxation. It's my guess that is not really true at all. Given the opportunity to have a fair tax to provide the revenue needed to support our governments, you will find every excuse to make the tax unfair and in your personal advantage. The only way for a tax to be fair is for every person to pay exactly the same tax. A per capita tax for every person, or $12,373 per person. Each person also owes a share of the National Debt of about $46,187. How much of your share of the National Debt and your spouse's would you care to pay today along with the $12,373 and another $12,373 for your wife?
Easy. They are not so healthy. Most of the world trades on the U.S. markets because their own markets are less attractive as a consequence of the taxes, and the listed securities are often subject to more reliable oversight and delisting.
I was not trying to push a tax on trades, but thought it a unique and different idea. It sounds good, but I have not studied it.
I have long talked up the FAIR tax. I think it is a great idea, as long as the IRS goes away too.
I don't want your property anymore than I want to have mine taken away, but the govt needs to be funded, and in a manner that is easy, fair, and keeps the economy booming. In that thought, I commented on the thread that someone else started.
The economies of Europe are in sovereign debt crises, and many of their stock markets are poor to aveage performers. The Deutsche Bourse finds the NYSE Euronext an attractive proposed acquisition precisely because its advantages improve its performance so much better than the other European stock markets. The Deutsche Bourse is heavily invested with cash deposits, so it is in the enviable position of having the leverage needed for such an acquisition despite the not so stellar performance of the equities markets. While the U.S. has its own sovereign debt problems emerging, the NYSE and U.S. economy remains are much more attractive hedge aginst the forseeable Euro debt crises presently unfolding.
Adopting the same destructive taxes as the Euro stock markets is self-defeating and an effective means of suppressing new business creation.
Your proposal would raise my trading cost 11% on a buy of 100 shares.
If the price is $1 per share, that’s $100 plus a $1 tax.
If the price is $50 per share, that’s $5000 plus a $1 tax.
Only if the share price is $0.10, does this work.
As always, any tax will inhibit the amount of business that gets completed. As Reagan said, “If you want less of something, tax it.” Tax share buys and sells, you will get less buys and sells.
Hope this makes sense. Here’s our problem: There are no good choices left. If we raise taxes (no matter on whom) we slow the economy by taking money out of the more efficient private sector. If we cut spending we slow the economy by losing govt jobs and contracts let out to the private sector. Cutting spending is more efficicent than raising taxes, but both slow the economy. Cutting spending at least gives a good payoff in the long run, raising taxes, not so much. Both hurt the economy in the short run, though cutting spending can lower interest rates at least.
Freegards,
SW
no
hell no.
“This idea stinks. Markets are all about the efficient allocation of capital and this is nothing but additional friction for those markets. Many of the stocks I purchase are less than $1 and this would be a dramatic tax on those type stocks.
If you want to further restrict small company access to the financial and credit markets this is a whiz bang idea. Sounds like something this administration might propose as it would further hamstring small business startups.”
BINGO.
This is a ‘lets make capital markets less efficient’ tax. Tax avoidance would be done via massive reverse-splits and lower trade volume.
Dumbest idea since Sarbanes-Oxley killed the small IPO market.
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