stock transfer tax

Did anyone see this? http://www.nytimes.com/2009/01/13/opinion/13herbert.html?_r=1

Yep been hearing about it- But i firmly believe especially his chicago friends were the CME is will let him know of the negative implications of such a tax especially on the futures market. Imagine buying futures for 20 mins and having to pay for that. I amlready think the exchange fees are high but what can we do.

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The economist Dean Baker is a strong advocate of a financial transactions tax. This would impose a small fee — ranging up to, say, 0.25 percent — on the sale or transfer of stocks, bonds and other financial assets, including the seemingly endless variety of exotic financial instruments that have been in the news so much lately.

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While the fees would be a trivial expense for what the general public tends to think of as ordinary traders — people investing in stocks, bonds or other assets for some reasonable period of time — they would amount to a much heavier lift for speculators, the folks who bring a manic quality to the markets, who treat it like a casino.

"It raises money in a way that comes primarily at the expense of speculation," said Mr. Baker. “The fees would be a considerable expense for someone who is buying futures, or a stock, or any asset at 2 o’clock and then selling it at 3. The more you trade, the more you pay.

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This, according to Mr. Baker, is part of the beauty of the transfer tax; it tends to curb at least some speculation. “It’s a very progressive tax,” he said, "that discourages nonproductive activity."

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Interesting choices of words: casino and nonproductive activity

well, this thing is getting some attention ... again.

Trader Tax

i'm sure there are other similar sites/opportunities to express your thoughts, but here is one too:

No Trader Tax

i wouldn't want this to get ignored, BUT i also wouldn't want it to throw anyone off their game. this is minutia. it deserves to be acknowledged and addressed but not at the expense of trading progress/performance. traders have enough junk on their minds as it is.

okay, now back to your regularly scheduled program ...

I know I could wait to see if they shoot this down before I panic, but, sorry, I'm already panicking. Given the way things are going, and the Congress and Pres we have, this very well could pass. I've been posting on this in my private area, and am glad to see it here. I came in to start a new topic, and found this one.

Here's what I haven't seen too many people post. The proposed tax is 0.25% each transaction, including futures. The tax is calculated on the total value, not the margin amount. So, for example, with the ES the total value at today's close would be $38,950 per contract. If you buy one ES contract, the 'round turn' tax would be $194.75 (about four points!), win or lose, per contract, per trade.

Let's say you buy 500 shares of the SPY at $80, and you plan to scalp it out for a nice 0.20 cent trade. The tax costs you $200. You need to average 0.40 just to cover the tax, plus slippage and commissions, just to break even. This isn't your average winner size, this is your average of winners and losers.

If this does pass it will end intraday trading, and I think even almost all swing trading. Liquidity will disappear, and I think it will collapse the market and the system. Given how obvious this is, it is easy to say it could never happen, but look what has happened so far. I, for one, am really scared.

Here is a link I found, I don't know if it is a good way to start or not, so comments are welcome:

http://www.rallycongress.com/no2tradertax/1536/

Oops, I see my link is the same as Omni's second 'No Trader Tax' link...

btw, Robert Green keeps his blog updated with info on this topic.

looks like it got shot down again for now.

this is interesting (from H.R. 676: United States National Health Care Act or the Expanded and Improved Medicare for All Act) as well:

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Subtitle B--Funding

SEC. 211. OVERVIEW: FUNDING THE USNHC PROGRAM.

(a) In General- The USNHC Program is to be funded as provided in subsection (c)(1).
(b) USNHC Trust Fund- There shall be established a USNHC Trust Fund in which funds provided under this section are deposited and from which expenditures under this Act are made.
(c) Funding-

(1) IN GENERAL- There are appropriated to the USNHC Trust Fund amounts sufficient to carry out this Act from the following sources:

(A) Existing sources of Federal Government revenues for health care.
(B) Increasing personal income taxes on the top 5 percent income earners.
(C) Instituting a modest and progressive excise tax on payroll and self-employment income.
(D) Instituting a small tax on stock and bond transactions ...

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nice.

Omni,

I read Green's post and what I took from it was that the last bill on this, from Sept 2008, H.R. 7125, was defeated. I didn't see any mention in his post about this one, H.R. 1068, being defeated. He is still advising people to sign the petition we posted the link for. Am I missing something in his post? I think it is still on the table.

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Originally posted by jimkane

Omni,

I read Green's post and what I took from it was that the last bill on this, from Sept 2008, H.R. 7125, was defeated. I didn't see any mention in his post about this one, H.R. 1068, being defeated. He is still advising people to sign the petition we posted the link for. Am I missing something in his post? I think it is still on the table.

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i think it keeps getting defeated, the most recent incarnation introduced Feb 13, 2009, from Robert's blog he writes:

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... Shooting a shotgun at Wall Street at the same time unfairly targets and kills off traders by asking them to pay a good portion of the bill, and this is simply wrong. Hurting traders also hurts Wall Street and the financial markets. Say goodbye to much of the liquidity that helps all investors. Most business traders and their families will be put out of business overnight, and they can’t qualify for most government handouts.

Thankfully to date, Congressional leadership has said “no” to DeFazio and his co-sponsors. Please keep saying no.

H.R. 7125: Law Sec. 1. SHORT TITLE; FINDINGS.
110th Congress - Pending Legislation (RIA)
with comments from Green ...

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but i don't now where to find that conclusion on the Thomas or Ways and Means sites.

http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/....not sure this is the place for this post, but it is important if some haven't seen it