Tax stock trades, what do you think?

May 23, 2019 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.

https://www.google.com/amp/s/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, 2019 4
    • 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, 2019
    • Pure Storage / Eng VRab43
      @microsoft, why do you think a wealth tax is such a bad idea?
      May 23, 2019
  • 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, 2019 3
    • Close to 40% short term capital gain is no ordinary income
      May 23, 2019
    • Salesforce baby J
      OP
      Unless hft fall under business rules/taxes shot term capital gains taxes as ordinary income.
      May 23, 2019
  • Traders provide liquidity.
    What is the point of taxing transactions? Raise the capital gains tax rate if you want to raise taxes.
    May 23, 2019 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, 2019
    • You pay tax on your profit already...
      May 23, 2019
  • Amazon Flynn
    You think that thinning the volume of trades will make the market *less* volatile?
    May 23, 2019 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, 2019
  • GoDaddy gd7ejdn
    Intellectually lazy. Why is the solution for everything taxes?
    May 23, 2019 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, 2019 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, 2019 1
    • Salesforce baby J
      OP
      You are probably right
      May 23, 2019
  • Google anons2
    We don't have a revenue problem . We have a spending problem.
    May 23, 2019 1
    • Salesforce baby J
      OP
      You are correct, however, see first comment
      May 23, 2019
  • 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, 2019 1
    • Dropbox EGmQ80
      I could see 0.05%, but agree half a percent is too high.
      May 23, 2019
  • Uber / Eng mH7bSe
    In communism world, stock shouldn't exist.
    May 23, 2019 0

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