Tax stock trades, what do you think?

Salesforce baby J
May 23 23 Comments

Bernie wants to tax stock and other trades per transaction (link to more details below)
Since many people here trade stock in some form, I would like to get your opinion on this matter.

Personally, I am for it. It’s a fraction of percent and for average Joe it won’t be noticeable. However, high frequency traders and other who have no interest in a company but rather looking for a quick $$$ will have to start picking trades more carefully hopefully leading to less volatility.

gle.com/amp/s/kkkk://www.bloomberg.com/amp/news/articles/2019-05-22/sanders-revives-plan-to-tax-stock-bond-and-derivatives-trades

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TOP 23 Comments
  • Finale Inventory / Eng huHG50
    I'm voting for Bernie and have donated over $600 to his campaign so far but I disagree with this position because it sounds like it may reduce liquidity and HFT are already getting taxed higher for making short term trades. I think Elizabeth Warren's wealth tax would be better.
    May 23 4
    • Can you explain the reasoning behind donating to a campaign? Genuinely curious as to why anyone (unless super Rich and can write it off on taxes) would ever want to give these people their money
      May 23
    • Finale Inventory / Eng huHG50
      I don't think you can write off donating to political campaigns, it's not treated the same as donating to an actual charity. I'm not super rich, will make a total of around 112k this year. People donate for the same reason that volunteer, they believe in a candidates vision and want them to succeed. I donate instead of volunteer because it's easier for me to help that way.
      May 23
    • Microsoft
      Tier 1

      Microsoft

      BIO
      #1 in Prestige
      Tier 1more
      A wealth tax is one of the worst ideas for a tax ever.
      May 23
    • Pure Storage / Eng VRab43
      @microsoft, why do you think a wealth tax is such a bad idea?
      May 23
  • Microsoft
    Tier 1

    Microsoft

    BIO
    #1 in Prestige
    Tier 1more
    HFT traders provide valuable liquidity.

    They are already heavily taxed on their capital gains.
    May 23 3
    • Salesforce baby J
      OP
      Don’t they get taxed on that as ordinary income ?
      May 23
    • Close to 40% short term capital gain is no ordinary income
      May 23
    • Salesforce baby J
      OP
      Unless hft fall under business rules/taxes shot term capital gains taxes as ordinary income.
      May 23
  • Google əๅɓoo⅁
    Traders provide liquidity.
    What is the point of taxing transactions? Raise the capital gains tax rate if you want to raise taxes.
    May 23 2
    • Salesforce baby J
      OP
      The point is to discourage speculative trading schmucks like me don’t go out where look for stock that is getting slammed for no reason, but it, hold it for 1-24 hours and sell it for 5-20% profit
      May 23
    • Google əๅɓoo⅁
      You pay tax on your profit already...
      May 23
  • Amazon Flynn
    You think that thinning the volume of trades will make the market *less* volatile?
    May 23 1
    • Salesforce baby J
      OP
      To some extent yes. Today, the cost of the trade is virtually 0. If there is more meaningful cost associated with every trade, traders will have to factor that in and I am sure some will decide to hold off.
      Also, hft will be hit the most and the are often responsible for triggering individuals stocks sell offs
      May 23
  • GoDaddy gd7ejdn
    Intellectually lazy. Why is the solution for everything taxes?
    May 23 0
  • Salesforce baby J
    OP
    Just to get few things out of the way.
    Some people against any taxes, I know you talking points, thanks
    Also, I do agree that government should get its spending under control, this is not a point of this conversation
    May 23 0
  • Intel apsodj
    The first income tax was 1%. Whatever tax gets created, understand that the rate will increase by 20x whatever it starts at.
    May 23 1
    • Salesforce baby J
      OP
      You are probably right
      May 23
  • Google anons2
    We don't have a revenue problem . We have a spending problem.
    May 23 1
    • Salesforce baby J
      OP
      You are correct, however, see first comment
      May 23
  • Amazon Northman
    I am all for adding a bit of friction to equity markets. But 0.5% on every transaction is probably too much friction.
    May 23 1
    • Dropbox EGmQ80
      I could see 0.05%, but agree half a percent is too high.
      May 23
  • Uber / Eng mH7bSe
    In communism world, stock shouldn't exist.
    May 23 0