Report: AFL-CIO Pushes Tax on All Stock Transactions

Report: AFL-CIO Pushes Tax on All Stock Transactions

www.foxnews.com

After the federal government put up hundreds of billions of dollars to bail out Wall Street, the largest labor union in America wants those firms to return the favor.

The AFL-CIO reportedly is promoting a proposal to tax every single stock transaction, and it's gained some support among Democrats.

According to The Hill, the tiny tax would be about a tenth of a percent -- but it could mean a lot of money for companies, like Goldman Sachs, that are making billions and conducting a high volume of trades.

Union policy director Thea Lee told the newspaper that the tax could raise betw

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Did a search but didn't find nothing on this.

Not much information on the article. But I am curious as to why a labor union is offering tax ideas to our government.

As far as the idea, I'm not sure what to think. On one side, it is taking money away from companies. However, ultimately we all know that the consumers end up paying the tab.

Any thoughts on this?

www.foxnews.com
(visit the link for the full news article)

It would be a disaster and would destroy liquidity in the market. Imagine a dearth of buyers during market sell offs. Imagine a huge tax on money you have already been taxed on and are trying to save for retirement.

We need a freakin revolution to throw the bums out and frankly most of these union bosses need to be behind bars.

More info from a different source.

Democrats and labor officials would also like to take a bite out of Goldman’s profits. Liberals are angry the company, which immersed itself in the frenzy of speculation leading to last year’s financial collapse, is now making huge profits after accepting (and repaying) $10 billion in government aid. Goldman employees are on track to earn an average of more than $700,000 this year.

There is also a growing realization among Obama administration officials and lawmakers that tax increases may be necessary to curb the ballooning federal deficit.

The idea of taxing financial transactions has gained some support on Capitol Hill and among senior government officials in London, a major foreign financial center.

thehill.com...

reply to post by SevenThunders


Whether it be this tax or another creative way to tax us, taxes are coming. The government has no choice. They need money and we are their targets.

I hope it passes. The big trading companies will then have no choice but to trade overseas. I'd like for that to happen.

I don't have a huge problem with a tax like this. It's largest impact would be on High Volume Traders like Goldman Sachs who allegedly use their HFT algorithms to frontrun others trades pretty much take what probably amounts to something close to this proposed tax from many trades anyway.

I don't see where it would affect a fundamental investor at all. .10% of off a $10,000 = a $10 tax for a transaction. Lets say the stock appreciates 25% over 2 years and is sold for $12500 $12.50 tax at closing plus the 15% long term cap gains on the $2500. $10+ $12.50+$375=$397.50 total taxes compared to today just $375. This would not affect the long term fundamental investor that much, as a matter of fact they would most likely pay more than $22.50 in brokerage fees anyway probably more than that buying an selling.

I do agree that there will be an affect on liquidity if something like this is implemented. I don't know how much of an affect though. Liquidity is definately needed for proper price discovery but IMHO liquidity much beyond that only a tool for the Goldman's and Hedgies of the world to steal pennies (times hundreds of thousands) from everyone else in the market.

IMHO there are too many games being played right now in the equity markets to do any fundamental investing anyway. Zombie banking institutions are being held up with taxpayer money and using that money to speculate in equities because they sure ain't lending it right now.

I hate to double post so quickly but while I was typing my previous post, one of Denninger's Tickers came out that illustrates why some type of transaction tax could be useful in limiting the abillity of the big guys to play games in the market.

From the Market Ticker

1 billion shares on the tape as of 10:00 Central on the NYSE and who's responsible for over 1/4 of it? This is outrageous folks. Three zombies, one of which has no equity value and two more that exist only because the government has guaranteed, collectively, half a trillion dollars of what may be worthless assets.

The zombies he is referring too are Bank of America, Citigroup, and Fannie Mae. Fannie would be the one with no equity and BoA and C would be the ones that only exist because of .gov backstops.

Wow, this is amazing, a labor union pushing for a "stock transaction" tax. Soon I'll be dumping "union" tea leaves into the ocean. IMO labor unions should be stumping for their union members and not engaging in socialist politics.

I am now going to do everything in my power to purchase non-union products. I have purchased my last "union" automobile. I'll be at Wal-Mart tomorrow doing my "shopping". I'll always attempt to buy American, but I sure as hell ain't buying union anymore.

(Guess who gave billions to the dem's party this year....... unions.)

reply to post by jerico65


The union proposing this idea also surprised me.

Am I incorrect in saying that these companies will merely increase the amount they charge for services to offset the taxes?

People, People, people!!! How many times do I have to say this. COMPANIES DON'T PAY TAXES, CUSTOMERS DO BY HAVING THE PRICE OF EVERYTHING RAISED TO MAINTAIN THE PROFIT MARGIN!!! IT'S A DOG AND PONY SHOW TO MAKE IT LOOK LIKE THE BUREAUCRATS ARE DOING SOMETHING!!! Geee's take a damned economics class sometime folks!! Utilities collect taxes on your bills and most of it is kept by the company. Very little goes to the states in taxes. plus the companies do put them into 4 month bonds and make money with the tax money. It's all a game and we're the pieces played! The brokers will start doing the very same game.

Zindo

reply to post by ZindoDoone

COMPANIES DON'T PAY TAXES, CUSTOMERS DO BY HAVING THE PRICE OF EVERYTHING RAISED TO MAINTAIN THE PROFIT MARGIN!!! IT'S A DOG AND PONY SHOW TO MAKE IT LOOK LIKE THE BUREAUCRATS ARE DOING SOMETHING!!!

Exactly, which means the union could be lobbying to help tax some of its own members.

Originally posted by jam321



As far as the idea, I'm not sure what to think. On one side, it is taking money away from companies. However, ultimately we all know that the consumers end up paying the tab.

Goldman Sachs doesn't have any consumers. They don't produce anything. They are just market speculators. Useless parasites.

reply to post by Make Speed Limit 45

Goldman Sachs doesn't have any consumers. They don't produce anything.

No argument here. But they do charge individuals and institutions for their services. It is the same process. Sachs will merely increase the amount it charges for its services.