Tax stock trades, what do you think?
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
HFT traders provide valuable liquidity. They are already heavily taxed on their capital gains.
Don’t they get taxed on that as ordinary income ?
Close to 40% short term capital gain is no ordinary income
I am all for adding a bit of friction to equity markets. But 0.5% on every transaction is probably too much friction.
I could see 0.05%, but agree half a percent is too high.
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.
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
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.
Intellectually lazy. Why is the solution for everything taxes?
Traders provide liquidity. What is the point of taxing transactions? Raise the capital gains tax rate if you want to raise taxes.
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
You pay tax on your profit already...
We don't have a revenue problem . We have a spending problem.
You are correct, however, see first comment
You think that thinning the volume of trades will make the market *less* volatile?
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
The first income tax was 1%. Whatever tax gets created, understand that the rate will increase by 20x whatever it starts at.
You are probably right
In communism world, stock shouldn't exist.
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