It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Today’s transaction tax proposals would apply the tax to the market value, rather than the par value, of a stock. Thus, the proposed tax is not comparable to the transaction tax in place in the U.S. between 1914 and 1958.
The U.S. had a tax on the market value of a stock transaction for only seven years, from 1959 through 1965. The rate of that tax was 4 basis points—less than one-sixth of the 25 basis points in the current proposal.
Even if a 4 basis point tax on market value were instituted now—i.e., even if the proposed tax were of similar magnitude to the tax that was in effect from 1959 through 1965—such a tax would have a much greater impact on investors’ costs, as overall transaction costs have declined markedly since 1965.
U.S. history provides no lessons on how markets would react to a transaction tax of 25 basis points.
Originally posted by bjax9er
why is taxing the only answer to democrat failures?
Originally posted by 0zzymand0s
Make it so.
A 1% tax on wall street trading, rebated directly to the American people, would be $45,714 to every man, woman and child in the country.
The beauty? All of this money would float back to the "top" anyway, enriching everyone, everywhere along the way by stimulating demand for goods and services.