Friday, November 27, 2009

Stop the proposed Financial Transaction Tax

  • the proposed financial transaction tax continues to get some play in congress...now, paul krugman has jumped on board too...some politicians want wall street to pay for main street's recovery, so they want to tax any purchase of a financial asset and any sale of a financial asset at 0.25%...this would be 0.50% per round trip...$500 tax per $100,000 round trip...
  • this would put me and most of the trader's i know out of business...
  • short term traders provide liquidity and price discovery to all market participants...
  • the traders i know did not cause this mess, so why penalize us?
  • i am not responsible for the near collapse of the financial system, so it is not fair that congress's solution to paying for the cleanup is too tax me out of my job...
  • the congressional stimulus packages of the past few years are meant to help put people back to work...i am all for that...but how is taxing me out of my job going to help achieve this objective?
  • this tax would not just hurt shorter term traders, but longer term investors too (401k, 403b, IRA, etc)...
  • my cpa, robert green, put together a petition to help stop this tax...please click on that link to contact your congressional reps and tell them not to pass this bill...i did...
  • in addition to emailing my congressional reps (both house and senate), i also paid to have my three letters printed and hand delivered to them...supposedly this has a bigger influence then just emails...it only cost $9...
  • we have to stop this tax...

2 comments:

  1. I agree with you completely. If adopted at the level proposed, it will put short term traders out of business, thereby drastically reducing the liquidity in our markets. Every day will be like the day before Thanksgiving or Christmas. Of course, Congress would probably have to create an exemption for some institutional players with formal "market-making" credentials. But guess who those players would be .... the very Wall Street firms who the Congressional sponsors of this legislation intend to punish. Result: Shallower, less liquid, and less competitive markets.

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  2. hi jan

    if this turns out to be the case, then it will be quite ironic...

    if you are a u.s. citizen, please contact your congressional reps and ask them to vote no on any financial transaction tax...

    good trading to you jan,
    adam

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