Tax on all stock trades proposed

There’s a proposed tax on all trades that would amount to $50 per trade on 100 shares of Apple for example. Go to http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/ to send email to tell elected representatives to vote against this tax that would further hurt investments including 401k and other retirement investments.

We are all just getting the “Change We Can Believe In” like Obama promised. The market is tanking because all this spending being proposed will do little to help the create jobs in the long term or grow the economy. In fact, it will likely cause severe damage for decades if his massive deficit spending isn’t halted. Since Obama was sworn in the stock market has lost about $3 trillion in value. The middle class’ retirement accounts are being decimated. This isn’t just hurting the wealthy. Look for it to hit 6,000 or lower in the next week or two.

It wouldn’t affect trades as much as it would the constant "churning"
of accounts.

the original purpose of the stock market was for investors to buy
shares of a company and then share in the profits via “dividends”

this gradually became perverted to a system of speculation (gambling) where the value of the stock was the route to profit.

No money “disappears” when a stock price falls, because the high price was transfered to the person who sold the stock in the LAST trade before the value fell.

If I had say 10,000 shares of a stock and sold it to you when the value was $100/share, you’d pay me $1million, then if the value
fell to $50/share you’d only be able to sell it for $500,000 but
I’ds till have the full million in my pocket.

That’s the problem with speculation and gambling, sometimes you lose.

You buying the stock were betting that the price would rise, while I selling it was betting that the price would fall.

I won you lost, so suck it up.

The problem is that the “gambling” system we have is regarded as NORMAL

it’s the whole “flip this house” mentality

it is NOT a sound basis on which to built a world economic system

That it has survived as long as it has defies logic and

Look up “Tulip Mania” on wikipedia, it’ll improve your understanding of my general disgust with the intelligence of my fellow man.

a $50 tax would clean out all the small “investors” and greatly reduce the “churn” factor, and basically eliminate the market chaos.

some broker trading 100,000 shares of stock would care less about
a $50 tax, the idiot trading with his retirement fund would.

Fact is that the small investor (ignoring the rare exception) will eventually lose it all

What they should do is eliminate capitol gains taxes for individuals
because taxing people who invest rationally or the small buisness man who wants to pass the buisness onto a son is STUPID.

We are the only industrialized nation on earth that charges
capitol gains taxes on interest income on a savings account!

THAT is rediculous.

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[quote=AllanDeGroot;2230899]We are the only industrialized nation on earth that charges
capitol gains taxes on interest income on a savings account![/quote] No you’re not. :disagree:

I suppose that depends on your definition of “industrialized”

I can’t remember the last manufactured product I’ve seen
that was marked “made in Denmark”

Then I for the life of me can’t remember EVER seeing a product
made in Denmark that wasn’t edible.

Ham, baked goods, cheese, beer… mabey other stuff simple isn’t exported from there to here.

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[QUOTE=AllanDeGroot;2230980]I suppose that depends on your definition of "industrialized"
I can’t remember the last manufactured product I’ve seen
that was marked “made in Denmark”[/QUOTE]

http://buydanish.home.comcast.net/~buydanish/products.htm

No money “disappears” when a stock price falls, because the high price was transfered to the person who sold the stock in the LAST trade before the value fell.

Henhhenh. If only I could to find that guy with my $2800.

The government paved the road to this meltdown in concert with wall Street and I for one would love to see the folks who helped destroy the lives of so many innocent people pay a premium for day trading.

BTW, $50 is chump change to the guys who actually control the market. I’d prefer a C note per 100 share trade.

[quote=AllanDeGroot;2230980]I suppose that depends on your definition of “industrialized”[/quote] Yeah, we are just a stone age agrarian society and everyone here wears bearskins and walk bare footed. :rolleyes:

UTR first let me state that this bill has nothing to Obama he is not on it and you cannot show me where he has even said he would support it.

Income is define as

The amount of money received for labor, for services, from the sale of goods or property, or from investments

so why is it that a person who has business or works by the hour and makes up to 250 thousand a year has to pay more taxes on it than someone who invest money he already has and makes a profit.
That is the way it is today in this country and it is wrong. I had a top republican in my state that the tax system we have now makes it stupid for him to keep his small business because if he sells it and invest it he does not have to do a thing and only has to pay 15 percent tax. I for one think that this is WRONG and so did the Republican I was talking to. We have a tax structure today that favors the rich and the poor with the middle class paying. This will lead to a time when we will have only the poor and the super rich.

[QUOTE=samlar;2231068]UTR first let me state that this bill has nothing to Obama he is not on it and you cannot show me where he has even said he would support it. [/QUOTE]

It illustrates the taxing feeding frenzy that the Democrats are caught up in. The chum is in the water and they are biting at everything that moves. Actually, this is tame compared to what Obama is proposing.

[QUOTE=samlar;2231068]Income is define as

The amount of money received for labor, for services, from the sale of goods or property, or from investments

so why is it that a person who has business or works by the hour and makes up to 250 thousand a year has to pay more taxes on it than someone who invest money he already has and makes a profit.
That is the way it is today in this country and it is wrong. I had a top republican in my state that the tax system we have now makes it stupid for him to keep his small business because if he sells it and invest it he does not have to do a thing and only has to pay 15 percent tax. I for one think that this is WRONG and so did the Republican I was talking to. We have a tax structure today that favors the rich and the poor with the middle class paying. This will lead to a time when we will have only the poor and the super rich.[/QUOTE]

There are a few reasons for this. Many times the investment capital has already been taxed by numerous levels of government. This investment capital also increases revenue to the government by growing the economy. Then again, maybe the person with the investment income, holds a job or owns a business and is already taxed at a higher rate. The bottom line in all this is the government is becoming too large a burden on the private sector. It is sucking up capital at a ferocious pace and leaving less and less for the private sector to use to grow the economy. Also, all this debt is transferring massive amounts of wealth from this country to the ones that hold our debt such as China and Japan. This can’t be sustained forever and Obama is putting us on the fast track to national bankruptcy. He trashed Bush for deficits and he is now making him look like a penny pincher. Obama says he is helping the middle class when in reality he is working double time finding ways to suck money out of their wallets on the sly. All this carbon offset tax and green energy stuff is going to raise the price of energy and dump it right into government coffers. Any tax cut Obama hands out will be taken back several times over by his hidden tax increases.

The middle class is fixing to get hosed big time by Obama and his agenda. The massive transfer of wealth he is pushing for will decimate jobs and send unemployment sky high. It is already killing the stock market which is impacting the retirement plans/income for vast numbers of middle class people. I know because my brother’s retirement account from working at Verizon for 35 years has been cut in half the past several months. He is scheduled to retire in May and now has to rethink his plans drastically. This trade tax is just another symptom of the overall taxation, socialism, redistribution of wealth disease the Democrats are suffering from and it is deepening this recession much further than it need be. Obama has probably added a year to it so far and if he keeps it up he will put us in a perpetual recession or maybe even a full blown depression. The public is rapidly getting fed up with him. His approval ratings are dropping fast and at the current pace he will be at Bush’s ending levels before the year is over. The more time passes the more I am having deja vu of the Carter years.

We won’t have poor and rich if Obama gets his way. We will have the privileged and underprivileged. We have seen this happen in recent history with the Soviet Union and many other socialist countries. The privileged will be the political class and they will consolidate their control over the masses to stay in power and support their lifestyle. This is coming if we don’t take the steps to stop it now.

Not so How many emails have you sent Obama about what you do not like? You can go to http://www.whitehouse.gov/ and send him an email. I have already sent him a lot and 90 percent have been about things I did not like. He is the first president to allow you to send emails so do it.

[QUOTE=samlar;2231548]Not so How many emails have you sent Obama about what you do not like? You can go to http://www.whitehouse.gov/ and send him an email. I have already sent him a lot and 90 percent have been about things I did not like. He is the first president to allow you to send emails so do it.[/QUOTE]

IMO, sending him emails is just a waste of my time. He got three Republicans to vote for his stimulus bill so the claims of bipartisan spirit is just a hollow promise from him. Heck, he even lost eleven Democrats in the process of getting it passed. He has already broken so many of his campaign promises that I stopped keeping count. He has shown no interest in any form of compromise. The less liberal Democrats are starting to peel off from him now. I think he is pushing his extreme agenda because he knows the time he will be effective is limited and his popularity will continue to fall. It appears to me that he would sacrifice a second term to pull the country into socialism. IMO, if the unemployment rate doesn’t fall noticeably and the stock market doesn’t substantially recover by the 2010 mid term elections, the Democrats with lose control of the House and/or Senate. Obama could damage the Democratic Party like Bush did to the Republicans. Throw in a terrorist attack or two and Iraq and/or Afghanistan sliding into turmoil and Obama could quickly become a modern day Jimmy Carter. If anyone wants to see where Obama is taking the country just look at California.

Ok, I’m SURE I’m gonna offend someone with the following but it’s REALITY as I see it so here goes.

Stock trading as we know it, as I’ve described above, is a culture of parasites.

I have difficulty seperating the idea the the mosquitos you call “Day traders” are any less “blood suckers” on the economy than the major brokerages are as leeches.

The government in the same anaology would be an old school doctor
who with his bleeding lancet and collection bowl is going to bleed the economy… even if the patient has a bullet wound that needs to be treated bleeding is “necissary”

“day trading” is at it’s essence nothing more than a more socially acceptable
form of compulsive gambling.

“Investing” isn’t something that you jump in and out of
with multiple trades, THAT is “speculation”

when you buy stock and SIT on it
(these days even more idiotic than speculation)
Or buy ANYTHING of value and sit on it that is “investing”

Futures trading is speculation, unless you plan to actually take
delivery of the commodity, if you intend to re-sell it at any point
you are either a speculator or profiteer.

The fact that most people don’t comprehend the difference is a major
portion of the sickness that pervades society.

Regardless of your belief THIS is the unvarnished truth.

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[quote=AllanDeGroot;2232565]Ok, I’m SURE I’m gonna offend someone with the following but it’s REALITY as I see it so here goes.[/quote]Just a friendly reminder that setting out to offend people is not a good idea in these political discussions. There have already been numerous warnings to this effect. :wink:

upsetting someone was not a desired outcome, just an anticipated one

Unpleasant truths often have that effect.

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@AllenDeGroot, I find myself in total agreement with your analysis of trading. I hear that ( opinion ) so infrequently that I thought I was the only one.