Nader Tax Plan thoughts? 1/2 cent tax per dollar on every stock trade

[GWestphal]

Reduce speculation and volatility, but at what cost?

 

[Fern]

Why do the Libs think every answer to some objectionable behavior is a tax?

If you don't want "speculation and volatility", which I don't personally have a problem with, just enact laws to prevent it.

Furthermore, if you tax every stock trade you also tax people who are not even engaging in "speculation and volatility".

Another stupid frickin Lib idea.

Fern

 

[Jadow]

so I buy $5000 dollars worth of a stock and he expects me to pay $25 in taxes.

Fuck him

 

[yllus]

What's the stated purpose? Stock trading in itself isn't something to be discouraged, but if this is to target high frequency trading I'd be willing to hear it out.

 

[Engineer]

What's the stated purpose? Stock trading in itself isn't something to be discouraged, but if this is to target high frequency trading I'd be willing to hear it out.

This.

 

[GWestphal]

But 0.5% on a long term holding that is expecting 8% return is maybe not such a big deal vs a super short term high frequency trade that has a 0.75% return. It would certainly curtail high frequency trading, which I would tentatively support since I think they are getting out of hand.

 

[ichy]

Ralph Nader shouldn't be taken seriously on any policy issue.

 

[GWestphal]

What about requiring a holding period of 1 min/hour/day on every trade? That would be direct regulation of high frequency trading.

 

[hal2kilo]

It's another OMG the end of civilization as we know it tax.

 

[yllus]

What about requiring a holding period of 1 min/hour/day on every trade? That would be direct regulation of high frequency trading.

That seems like an better solution than Nader's. Where does he want the proceeds of this to be sent? If it would be to fund the consumer protection facility or some sort of emergency stock market fund in case a bailout is needed again in the future, that could be worth it.

 

[halik]

What's the stated purpose? Stock trading in itself isn't something to be discouraged, but if this is to target high frequency trading I'd be willing to hear it out.

All it's gonna do is blow out bid ask spread and kill volume. Expect crazy choppy markets, as execution will be delayed until where the actual mid price moves past the amount you need to pay for tax.

Not to mention the whacky non-linear interactions you'd get from institutional money trying to move size (high trading costs due to # of shares -> low frequency of trading -> only rebalance on substantial info -> everyone moving large size at once).

 

[Martin]

Funny to see Mark Cuban and Ralph Nader suggesting the same policy.

http://blogs.wsj.com/marketbeat/201...h-frequency-traders-are-the-ultimate-hackers/

 

[Engineer]

All it's gonna do is blow out bid ask spread and kill volume. Expect crazy choppy markets, as execution will be delayed until where the actual mid price moves past the amount you need to pay for tax.

Not to mention the whacky non-linear interactions you'd get from institutional money trying to move size.

Kind of like before high frequency trading started? :hmm:

 

[halik]

Kind of like before high frequency trading started? :hmm:

Yeah, 20 years ago? How much were you paying per trade in 1991 ?

I take it you long for days where you called a travel agent to get a plane ticket as well?

 

[GWestphal]

I think the money was going to go towards paying down the debt. At least that seems like it would be a good idea.

 

[nehalem256]

Reduce speculation and volatility, but at what cost?

Wouldn't it increase volatility since it decreases volume?

 

[Engineer]

Yeah, 20 years ago? How much were you paying per trade in 1991 ?

I take it you long for days where you called a travel agent to get a plane ticket as well?

So you don't think that there are other factors that have lowered the price per trade down since 91? Here's a hint....the PC and the internet. Removing the person (broker) from the trading desk surely didn't have anything to do with it?

IIRC, it's not hard to defend high speed trading if it's your job to write the software for it, eh?

 

[Siddhartha]

Why do the Libs think every answer to some objectionable behavior is a tax?

If you don't want "speculation and volatility", which I don't personally have a problem with, just enact laws to prevent it.

Furthermore, if you tax every stock trade you also tax people who are not even engaging in "speculation and volatility".

Another stupid frickin Lib idea.

Fern

Looking at the consequences of 30 years of reduced taxes compared to what was promised, it is time to move away from the knee jerk response to raising taxes to deal with budget deficits.

 

[halik]

So you don't think that there are other factors that have lowered the price per trade down since 91? Here's a hint....the PC and the internet. Removing the person (broker) from the trading desk surely didn't have anything to do with it?

IIRC, it's not hard to defend high speed trading if it's your job to write the software for it, eh?

So you'd replace the broker with a computer, but keep specialists on the floor... as that's efficient? That akin to have some guy on the other end of expedia.com typing in your flight information into AA reservation system.

Guess who fought decimalization of of NYSE the hardest?

 

[lothar]

And what happens to this tax plan when companies do a reverse stock split and their stock ends up being as expensive as Berkshire Hathaway?

 

[Incorruptible]

Ralph Nader just proved that he is an even bigger idiot than I thought he was, the answer is not government and taxes, when will the ignoramus learn?

 

[Jhhnn]

Heh. It doesn't go as far as a very interesting proposal, the Automated Payment Tax-

http://www.apttax.com/

Either proposal would obliterate HST... OTOH, the stock market seemed to work just fine, maybe better, before we had dueling algorithms trying to wring out every nickel instantaneously...

 

[Fanatical Meat]

I read about this years ago. Most of the volatility comes from super high volume computer trading that no human could do alone. Small investors like all of us wouldn't really be impacted. The trading houses that hold tens of thousands of stocks for sometimes seconds using computer models would be impacted and in my opinion they are not adding value in any way. Nobody can compete with a machine that is milliseconds from the Dow's stock feed. Does anyone realize that investment firms spend huge money renting space close to the trading computers to gain small trading advantages by having less wire to send trading signals down?

 

[Jhhnn]

I read about this years ago. Most of the volatility comes from super high volume computer trading that no human could do alone. Small investors like all of us wouldn't really be impacted. The trading houses that hold tens of thousands of stocks for sometimes seconds using computer models would be impacted and in my opinion they are not adding value in any way. Nobody can compete with a machine that is milliseconds from the Dow's stock feed. Does anyone realize that investment firms spend huge money renting space close to the trading computers to gain small trading advantages by having less wire to send trading signals down?

I think the only way small investors would be impacted would be positive. The big boys, the market insiders, already had enormous advantages prior to HST, which just advantages them even more.

 

[Anarchist420]

Bad idea because the govt already taxes more than 10% of national income. The govt should tax less than 1% of national income in order to minimize sin. They should make the income tax a flat marginal rate of 1% while not taxing tips or CG and while also keeping all current loopholes and exemptions... and all other taxes should be repealed.