Posted on 01/22/2021 5:25:22 AM PST by Red Badger
I prefer transaction tax over capital gains tax.
“I don’t trust this scheme, it would be more reassuring to legislate microtransactions out of business directly rather than pretending to do so and then tout all the money that doing so would raise. Just like the cigarette sin taxes, they promise all this money is going to be raised, but simultaneously insist that people targeted by the tax would change their behavior and avoid the conditions that would encounter the tax.”
That’s fair. That occurred to me when I read the article...they will spend it, and the money will never arrive...and they know all that.
This bill may have merit. If I have to pay income tax on my social security income just because I planned my retirement well, why shouldn’t these traders pay a transaction tax on these microsecond trades that occur only to enhance their opportunity to make a buck. The tax would not do measurable harm to a trade made to be parked in a 401K or a pension fund for an extended period of time. These micro-second traders add no wealth to our economy. They are like ticks on a deer—pure parasites living off the labor of others.
This is just the beginning. 2021 will see a flurry of tax increases as a prelude to the big heist: a raid on people’s 401K accounts. The impact on the U.S. economy will be devastating.
Wall Street owns the dems. This isn’t going anywhere.
Maybe not with Biden’s handlers. But the radical left will seize control and get it sooner or later. And it will be hilarious when it happens.
I'm not a fan of high frequency traders and, most particularly the pattern day trader rule which limits HFT to those with accounts worth over $25,000. The excuse is that HFT is too risky for the average investor. The reality is that short-term profit taking is far less risky than the "buy and hold" strategy sold to the average investor. And the government STILL collects a tax of roughly a penny per every $400 in stock sold, which is MORE than adequate to regulate Wall Street.
That being said, a bigger tax will do little to reduce high frequency traders because most of it is done by investment banks like Goldman Sachs, not some retired schmuck who wants to make a little more on an account typically worth between $25K and $100K who can least afford the tax. But I guess that's the whole idea.
HATE DeFazio.
HOWEVER, a vast amount of WALL STREET sucks.
Right, because the market was never volatile before high speed trading. This will be like the time when they banned onion futures trading and caused onion price volatility to go up.
You get what you vote for. Wall Street can’t complain.
WELL, THERE’S ALWAYS TULIPS..................................
The “radical left” are just useful idiots manipulated at will by the NWO who pull the den levers.
“This is just the beginning. 2021 will see a flurry of tax increases as a prelude to the big heist: a raid on people’s 401K accounts. The impact on the U.S. economy will be devastating.”
Yep, with all their spending plans, the country would collapse if they don’t bite into the middle class for revenue...although we are going down regardless.
The radical left are useful idiots for the Democrats. They have been for years/decades.
The idea that the radical left might meet up with Trump populism must be causing a lot of sleepless nights in the swamp.
See my post #46. They already do so. The purpose of this asinine bill isn't to end or even discourage high frequency trading.
It is to squeeze out small investors so only the big shots with program trading can afford to do it.
I know retired people who can make a little extra weekly by doing this. They can even subscribe to a level 2 viewer from places like investorhub.com for about $17/month I am learning how to do it myself in preparation for retirement.
The big ranchers hate little guys like this because they think we are poaching profits they are entitled to. That's the whole purpose of DeFazio's bill.
Old fart: "Hey, how come my 401K is losing money? Stocks are still going up?"
Sock Sales Brokerman: "Yeah, but you have to factor in our new fees?"
Perhaps Congress looks at it this way....
Yes, it is true that Dem Congressmen own lots and lots of stock and are supported by Wall Street but they get wealthy from the stock market the old fashioned way....They get inside information about future government actions and regulations and act on the information accordingly.
These nerds and techies are getting rich off the stock market through science, ingenuity and risk. These are not “honorable” means in the eyes of a congresscritter.
Graft and corruption are the only “honorable” ways to game the system.
Original :
The Wall Street Tax Act would tax the sale of stocks, bonds, and derivatives at 0.1 percent (10 basis points),
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Correction (the truth as if it were written by a true “journalist”):
The Wall Street Tax Act would tax the sale of stocks, bonds, and derivatives at “an initial rate of” 0.1 percent (10 basis points), but “several experts (name source) we spoke with agreed that the initial rate of 0.1 percent would only continue to go higher just like every other fee or tax imposed, over the past century, has done in order to raise revenues.
The top 10% own 85% of stock? Total BS.
I have some very wealthy clients. Most make their money off of real estate deals.
I am not understanding your position.
It would seem to me that small traders would hold the stock for longer periods of time. Whether that is for a full day, a full week or a full year...it doesn’t matter. The longer you hold and the fewer trades you make, the less you are impacted by the transaction tax.
I would imagine that Goldman Sachs, would have a much higher turnover volume and much shorter hold times than a smaller investor.
Can you explain why you think the proposed transaction tax would affect GS less than a small guy?
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