Harmor
Error_Name_Not_Found
+605|6518|San Diego, CA, USA
Democrats push $150B stock tax on Wall Street

The Hill wrote:

A House bill still being drafted aims to raise $150 billion each year to pay for new jobs.

Under a bill being drafted by Democratic Reps. Peter DeFazio (Ore.) and Ed Perlmutter (Colo.), the sale and purchase of financial instruments such as stocks, options, derivatives and futures would face a 0.25 percent tax.

The bill, a copy of which was obtained by The Hill, is titled the “Let Wall Street Pay for the Restoration of Main Street Act of 2009.”

Half of the $150 billion in tax revenue would go toward reducing the deficit, while the other half would be deposited in a “Job Creation Reserve” to support new jobs.

The job fund would be available to offset the additional costs of the 2009 highway bill and other legislation that creates jobs.

The Obama administration and congressional Democrats are looking for ways to create jobs after the nation’s unemployment rate hit 10.2 percent in October and job losses are expected to rise.
0.25% now...5% in a couple of years I bet...
Flaming_Maniac
prince of insufficient light
+2,490|6677|67.222.138.85
http://sethgodin.typepad.com/seths_blog … nline.html

note 7

You want stability, this is how you get it. Considering how economically irrelevant the stock market is and how much fluctuations fuck with consumer confidence and our general feeling of well being, I don't see how this is a problem.
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

Harmor wrote:

Democrats push $150B stock tax on Wall Street

The Hill wrote:

A House bill still being drafted aims to raise $150 billion each year to pay for new jobs.

Under a bill being drafted by Democratic Reps. Peter DeFazio (Ore.) and Ed Perlmutter (Colo.), the sale and purchase of financial instruments such as stocks, options, derivatives and futures would face a 0.25 percent tax.

The bill, a copy of which was obtained by The Hill, is titled the “Let Wall Street Pay for the Restoration of Main Street Act of 2009.”

Half of the $150 billion in tax revenue would go toward reducing the deficit, while the other half would be deposited in a “Job Creation Reserve” to support new jobs.

The job fund would be available to offset the additional costs of the 2009 highway bill and other legislation that creates jobs.

The Obama administration and congressional Democrats are looking for ways to create jobs after the nation’s unemployment rate hit 10.2 percent in October and job losses are expected to rise.
0.25% now...5% in a couple of years I bet...
So they're taking money from the people that create jobs to... create different jobs? :confused:

Last edited by JohnG@lt (2009-11-24 21:48:55)

"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
AussieReaper
( ͡° ͜ʖ ͡°)
+5,761|6123|what

Harmor wrote:

0.25% now...5% in a couple of years I bet...
10.2% in October. A bit less in a couple a years I hope...
https://i.imgur.com/maVpUMN.png
Skorpy-chan
Member
+127|6315|Twyford, UK
Can anyone explain how this is supposed to work?
As I really don't see how taking money off wall street is going to help wall street recover.

Unless by 'creating jobs' they mean spending the $150 billion on projects that create jobs elsewhere. Like, say, solving LA's smog problem by giving the unemployed a pick, a shovel, and a minimum wage and setting them to move the rockies out the way.
Cybargs
Moderated
+2,285|6686
Helps paying the debt to China.
https://cache.www.gametracker.com/server_info/203.46.105.23:21300/b_350_20_692108_381007_FFFFFF_000000.png
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

Skorpy-chan wrote:

Can anyone explain how this is supposed to work?
As I really don't see how taking money off wall street is going to help wall street recover.

Unless by 'creating jobs' they mean spending the $150 billion on projects that create jobs elsewhere. Like, say, solving LA's smog problem by giving the unemployed a pick, a shovel, and a minimum wage and setting them to move the rockies out the way.
The government can't 'create' jobs because it does not generate a profit. All income that goes into the government has to come from somewhere else in the economy. This is a perfect example. They're taking money from those who invest in the stock market and instead of letting those people (and the market) dictate where the jobs are created (market dictates that jobs are created where they are needed), they're instead directing the money to create jobs in a sector of the economy that doesn't warrant it.

All of the jobs 'saved' or 'created' in the past year have taken money out of other parts of the economy (mostly our future) and directed the funds to wherever a politician felt they were needed instead of where the supply and demand forces of the market would dictate. It's a recipe for disaster to create artificial demand.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
AussieReaper
( ͡° ͜ʖ ͡°)
+5,761|6123|what

JohnG@lt wrote:

Skorpy-chan wrote:

Can anyone explain how this is supposed to work?
As I really don't see how taking money off wall street is going to help wall street recover.

Unless by 'creating jobs' they mean spending the $150 billion on projects that create jobs elsewhere. Like, say, solving LA's smog problem by giving the unemployed a pick, a shovel, and a minimum wage and setting them to move the rockies out the way.
The government can't 'create' jobs because it does not generate a profit. All income that goes into the government has to come from somewhere else in the economy. This is a perfect example.
What about when the improve infrastructure? The improvements do create a profit because it helps the companies who use it for transport, communication, whatever.
https://i.imgur.com/maVpUMN.png
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

AussieReaper wrote:

What about when the improve infrastructure? The improvements do create a profit because it helps the companies who use it for transport, communication, whatever.
That's one of only two exceptions. The other is research grant money (spent wisely and not wasted on sending people to study the behavior of gay men in Argentinian night clubs (true story)).

Edit - The problem with infrastructure projects in America is that most states are required to hire union contracting crews to do the work. So you really get a lot less bang for your buck. In fact, many infrastructure projects end up costing far more than they will ever return making them bad investments. Our government likes to quote Keynes when he said the best way for the government to spend money is to invest in infrastructure. Well, building a bridge in bum fuck Wyoming doesn't really do anything for the economy.

Last edited by JohnG@lt (2009-11-24 22:29:10)

"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
Catbox
forgiveness
+505|6686
More taxes... that should get the economy rolling...
2010... vote out all incumbents... both parties...
Love is the answer
SealXo
Member
+309|6506
https://i273.photobucket.com/albums/jj219/BryanBorenstein/1257096022206.jpg
wat
DrunkFace
Germans did 911
+427|6651|Disaster Free Zone

JohnG@lt wrote:

Harmor wrote:

Democrats push $150B stock tax on Wall Street

The Hill wrote:

A House bill still being drafted aims to raise $150 billion each year to pay for new jobs.

Under a bill being drafted by Democratic Reps. Peter DeFazio (Ore.) and Ed Perlmutter (Colo.), the sale and purchase of financial instruments such as stocks, options, derivatives and futures would face a 0.25 percent tax.

The bill, a copy of which was obtained by The Hill, is titled the “Let Wall Street Pay for the Restoration of Main Street Act of 2009.”

Half of the $150 billion in tax revenue would go toward reducing the deficit, while the other half would be deposited in a “Job Creation Reserve” to support new jobs.

The job fund would be available to offset the additional costs of the 2009 highway bill and other legislation that creates jobs.

The Obama administration and congressional Democrats are looking for ways to create jobs after the nation’s unemployment rate hit 10.2 percent in October and job losses are expected to rise.
0.25% now...5% in a couple of years I bet...
So they're taking money from the people that create jobs to... create different jobs? :confused:
How do people buying shares create jobs? :confused:
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

DrunkFace wrote:

How do people buying shares create jobs? :confused:
People that have enough disposable income to invest are generally the ones that start businesses or expand their existing ones.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
DrunkFace
Germans did 911
+427|6651|Disaster Free Zone

JohnG@lt wrote:

DrunkFace wrote:

How do people buying shares create jobs? :confused:
People that have enough disposable income to invest are generally the ones that start businesses or expand their existing ones.
Most people who start or own a business will be investing in there own business not in other people through the share market. Personal traders are most likely to be urban professionals, which is also pretty marginal considering the vast majority of share transactions are between multi-billion dollar companies like banks and insurance companies.
mcminty
Moderating your content for the Australian Govt.
+879|6691|Sydney, Australia
Don't see what the problem is.. the daily volume traded on the NYSE alone is phenomenal. It's a little outdated, but from the NYSE website:

As of Dec. 31, 2008, NYSE Euronext has approximately 8,500 listed issues, a total global market capitalization of $16.7 trillion/€12.3 trillion and its equity exchanges transact an average daily trading value of approximately $153 billion.
Tbh, they should tax speculative foreign exchange transactions (somehow like capital gains tax on shares). Approximately 4 trillion dollars is traded worldwide daily in foreign exchange, with approximately 1 trillion from spot transactions (settled within two days). That's a fucking load of money..


Skorpy-chan wrote:

Can anyone explain how this is supposed to work?
As I really don't see how taking money off wall street is going to help wall street recover.

Unless by 'creating jobs' they mean spending the $150 billion on projects that create jobs elsewhere. Like, say, solving LA's smog problem by giving the unemployed a pick, a shovel, and a minimum wage and setting them to move the rockies out the way.
How do you read into the article and come up with the money being used to create new jobs in the financial sector? It says that nowhere. Government creates jobs via large capital works projects/spending on infrastructure.
Doctor Strangelove
Real Battlefield Veterinarian.
+1,758|6438

Catbox wrote:

2010... vote out all incumbents... both parties...
What would that solve?
Dilbert_X
The X stands for
+1,810|6076|eXtreme to the maX
Something to put a damper on the wild speculation which goes on in the stock market couldn't be bad.
Русский военный корабль, иди на хуй!
PureFodder
Member
+225|6255
The UK has a 0.5% tax on share trades, society failed to collapse.

It just reduces speculation whilst having no appreciable impact on long term investments which are what actually create jobs.

0.5% tax on anything other then very short term speculation is trivial for almost all investors.
Macbeth
Banned
+2,444|5556

Since New York is the stock trading capital of the world and all wouldn't a tax on stock trades and such hurt the economy of New York by making companies and investors who enjoy not getting hit with taxes move somewhere else that doesn't have taxes on stock purchases?
Spark
liquid fluoride thorium reactor
+874|6645|Canberra, AUS

Doctor Strangelove wrote:

Catbox wrote:

2010... vote out all incumbents... both parties...
What would that solve?
Nothing, it's just a useful distraction.
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

Macbeth wrote:

Since New York is the stock trading capital of the world and all wouldn't a tax on stock trades and such hurt the economy of New York by making companies and investors who enjoy not getting hit with taxes move somewhere else that doesn't have taxes on stock purchases?
Federal tax, not state.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
Macbeth
Banned
+2,444|5556

JohnG@lt wrote:

Macbeth wrote:

Since New York is the stock trading capital of the world and all wouldn't a tax on stock trades and such hurt the economy of New York by making companies and investors who enjoy not getting hit with taxes move somewhere else that doesn't have taxes on stock purchases?
Federal tax, not state.
Alright but wouldn't it still work the same way, by making large investors move away from New York to avoid paying more in taxes thus hurting the cities economy?
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

Macbeth wrote:

JohnG@lt wrote:

Macbeth wrote:

Since New York is the stock trading capital of the world and all wouldn't a tax on stock trades and such hurt the economy of New York by making companies and investors who enjoy not getting hit with taxes move somewhere else that doesn't have taxes on stock purchases?
Federal tax, not state.
Alright but wouldn't it still work the same way, by making large investors move away from New York to avoid paying more in taxes thus hurting the cities economy?
Where are they going to move? Dubai?
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
Macbeth
Banned
+2,444|5556

JohnG@lt wrote:

Macbeth wrote:

JohnG@lt wrote:


Federal tax, not state.
Alright but wouldn't it still work the same way, by making large investors move away from New York to avoid paying more in taxes thus hurting the cities economy?
Where are they going to move? Dubai?
I'm sure there are plenty of places in the west that would be more than happy to accommodate them.
Jay
Bork! Bork! Bork!
+2,006|5328|London, England

Macbeth wrote:

JohnG@lt wrote:

Macbeth wrote:


Alright but wouldn't it still work the same way, by making large investors move away from New York to avoid paying more in taxes thus hurting the cities economy?
Where are they going to move? Dubai?
I'm sure there are plenty of places in the west that would be more than happy to accommodate them.
The highest volume trading in the world is on the NYSE so unless they're planning on trading elsewhere it doesn't really matter where they live. I assume this tax would apply to foreigners making trades as well.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat

Board footer

Privacy Policy - © 2024 Jeff Minard