Now they want to punish the little guy who is trading and who already pays taxes over the capital gains. People think 0.1% is small but I can tell you that it is impossible to ever create a trading system that can be profitable. For instance with ES mini futures now around 1000 you will have to pay 0.1% of 50000$ = 50$ on top of the commission of 2.4$. Buying and selling 1 future would cost you 104.8$. Before you will start making money the future has to move 2 points.

So they will force market participants to become “long term investors”. Now, we all know that this is just handing out money to these criminal listed companies who reward themselves outrageously and give nothing in return (in 95% of the cases).

Maybe it is a good thing. Introduce a tax and let this fraudulent system collapse all together. Let these criminal listed companies work for a change. Because I tell you when this tax is introduced I am out and will never come back.

As you know – but gloss over – the actual principal purpose of the stock market is as a casino, and a transaction tax is no bad thing IMHO. In fact we even have one already in the UK – called Stamp Duty, and it’s no big deal. It doesn’t do much to stifle trading, that’s for sure,and it’s a simple and effective tax. Transparent, easy to collect, and unavoidable.

Neverthless I think that the justification and rationale for a Tobin tax is misconceived since who can say what transactions are speculative? It is not implementable in relation to FX transactions either, I would suggest.

I advocate a transaction tax on gross corporate revenues by way of a limited liability levy, and I would abolish all other corporate taxes. I would also apply a levy to gross revenues from intellectual property protected by copyright or patent whoever owns them.

Both levies – like land value tax – are taxes on rents from unearned privilege, and in my view infinitely preferable to taxes on earned income.

I just saw you on Kudlow. Great job. I laughed out loud when he brought up the UK as a successful example of this stamp tax. NOBODY pays that tax except mom and pop investors in the UK. EVERY institution remotely associated with the market is exempt placing the burden on the little guy. Some success story!

BTW,
India (who had this dreadful tax) is eliminating it.

http://business.rediff.com/report/2009/a ug/12/new-direct-taxes-code-released.htm

I am a loyal democrat who is getting tired of the “class warfare” being waged by the democratic party. I did not become a democrat to hate another person for any reason be it class or race.