Hi, guys, I’m going around posting this all over ET as a plan of action to stop the imposition of a 0.25% tax on all transaction in securities and futures currently making its way through the House Committee.
I fully expect everyone to understand the severity of the situation by visiting this link:
http://www.advisorworld.com/2009/02...nomic-survival/
When you click on the first link in the post, you will see, most likely to your horror, that such a suggestion is really being considered.
If you value sites like this, and would like to keep your equity values from declining to zero, please take action and get informed
Please use this link to contact your representative:
https://writerep.house.gov/writerep/welcome.shtml
Don’t forget to include an informed opinion using this link in your e-mail with a couple sentences of your own as to why this would destroy our economy:
http://www.advisorworld.com/2009/02...nomic-survival/
I estimate the immediate cost of this tax is about $5 trillion. So cut our USA economy in half, and lower potential millenial World GDP by about 50 trillion immediately and that’s about the cost of this transaction tax.
The advisorworld link does not work…
"I estimate the immediate cost of this tax is about $5 trillion. So cut our USA economy in half, and lower potential millenial World GDP by about 50 trillion immediately and that’s about the cost of this transaction tax.
I would not agree with this cost estimate at all. I don’t like the tax either, but the hit will likely be economically in the hundreds of billions, not $5 trillion. And there will probably be clever adaptations to try and get around the tax. US traders would try to offshore their trading, but my guess is, the govt would collect the tax regardless of where the trading was performed. It would certainly gut places like Collective2
The reality is, I doubt this would ever survive attempts to pass and implement it in its current form.
It is very similar to the infamous Tobin tax. Since many many years, leftist and anti globalist pressure groups have tried to impose a "Tobin Tax" on all Forex trading transactions, worldwide. This tax has always failed to get decent support from free market economists and politicians, especially in the US, but it has been discussed in many parliaments in Europe. Obviously, the US and the UK were strongly against, as such a tax is very anti free market…
But this time, things may be different in the US. Traders, bankers and hedgies are not much liked by the general population after what happened, so I see less resistance from the broad public, academics, lobyists to such a tax in the US. Uncle Sam needs money badly to fund stimulus and bailouts. Where better to get it than from those greedy bankers who are said to have created the mess but were saved by public money?! Joe average will love it!
Relocating the business offshore will not help to avoid the tax imho. Authorities would still see the flow once you want to repatriate the money.
Sign the petition to help defeat this!
http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax
Sign the petition to help defeat this!
http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax
Sorry for double posting!
