Posted on 01/10/2016 6:50:42 AM PST by parksstp
Republican presidential frontrunner Donald Trump pledged to "tax Wall Street" as he sought to use a severe stock market selloff to plant new seeds of fear among voters during a campaign rally Saturday in Iowa.
At times, the real estate mogul sounded more like Democratic presidential candidate Senator Bernie Sanders, a constant critic of Wall Street, than a billionaire candidate running for the Republican presidential nomination.
"There's a bubble," Trump told his audience in Ottumwa, southeastern Iowa, noting the nation's high level of debt. "You see the stock market is starting to, you know, see what's going on," he said. "It's starting to have some very bad weeks and some very bad numbers."
(Excerpt) Read more at newsmax.com ...
I’m sorry but your argument is losing me. High speed trading doesn’t have anything to do with your tax rate. High frequency trading is taxed at the short term capital gains rate, which is the same rate everyone else pays. If you think taxing long term capital gains at a higher rate is just for hedge funds guys that make a lot of money, it will trickle down to everyone, and then taking risk will not be as appealing.
This is just like the liberals complaining about oil companies that we are “subsidizing”. In reality, they have depletion and other writeoffs just like any other business.
I’ll put it another way, high speed trading results in money STOLEN DIRECTLY from legitimate investors. If you support that fine, if you still don’t understand it, find the 60 Minutes report on it.
60 minutes? LOL
Not always...and not this time.
Lots of people are pointing out the exact same thing. So that means it is not Trump getting desperate or any other fantasy people are coming up with.
I don’t believe in the conservative scorched earth way of thinking. I believe scorched earth is a tactic employed by the losing side when they are losing. A lot of TDS is scorched earth thinking. Maybe this helps;
Conservative vs Liberal, a history of terms and discussion.
http://www.freerepublic.com/focus/f-news/3373783/posts
Hot link to Laz’s post; http://www.freerepublic.com/focus/news/3372298/posts?page=85#85
I don’t believe in it either and the coolest head in this cycle has been Cruz through and through. Mark my words many on here will regret they ever thought this man should represent the conservative cause. Trump would have never seen the light of day under any other election but because things have been kicked up so bad they need another dose of hopey changey.
If I’m wrong I’ll come back and fess up. I’m not bitter in swallowing my own pill. However history is an indicator of who someone is. Obama sat in that church for 20 years just as Trump had been and avowed liberal for just as long
I simply don’t agree that Trump will be as bad as you think. If history is an indicator look at Trump’s business success. Watch the videos of him in 1988, 1998 on youtube. He has the same conservative business values he has now. He’s not nearly as inconsistent as people like to pretend. I like Cruz, but I don’t think he can beat Hillary. And I think we will see way more status quo with Cruz.
If you don’t believe in scorched earth you will vote for Trump if he’s the nominee. Will you?
Thanks for your reply and I respect your position. I also do hope you are right on this. If the candidate I will vote for him over the D. However for now I won’t call him representative of the conservative cause. Anti-establishment yes but not conservative
It's also a negotiating tool against currency manipulation. Trump has been consistently specific about this. It's not Trump's problem when people take what he said out of context or can't follow the logic.
Who else in this race is talking about currency manipulation or corporate inversion?? No one.
I won’t.
I respect your position too. From what I can see the current battle isn’t conservative vs liberal or democrat vs republican - it’s elitists vs we-the-people.
If we don’t understand and fight the right battle we will lose the war. The people, even here on FR, who say they will vote Cruz or no-one don’t understand the battle.
I don’t believe in that scorched earth way of thinking. I believe scorched earth is a tactic employed by a losing side when they are losing. Maybe this helps;
Conservative vs Liberal, a history of terms and discussion.
http://www.freerepublic.com/focus/f-news/3373783/posts
Hot link to Laz’s post; http://www.freerepublic.com/focus/news/3372298/posts?page=85#85
I too agree. While I’ll do everything I can to try and have Trump beat in the primaries should he receive the nomination I’ll back him in the general. He will be better than any on the opposing side.
This is funny stuff.
Why is it that people like you (and many others) on this thread feel compelled to spout off about things that you know nothing of and don’t understand at all?
High frequency trading (I’ll call it “HFT”) has ZERO effect on investors. An outfit doing HFT buys AND sells (or sells and buys) the same security in a matter of microseconds. So what?
Any HFT trade is a net zero — they bought and sold, or sold and bought — in a flash. No change in their net position. All they did was contribute liquidity to the market. If they’re happy making .001 or .0001 or .00001 or .000001 per share, more power to them.
Turns out that the profitability of those trades isn’t nearly what it used to be. Gosh, who’d a thunk it, there’s a lot less capital and effort devoted to it now than previously.
They can place orders to their heart’s content, all orders contribute to liquidity which wouldn’t otherwise be there.
It’s not a tax of any kind on anyone. An HFT trading operation is just another market participant and takes on risk just like anyone else does when a trade is made.
I, like most investors place my orders at a limit price. Someone else is either willing to sell it to me at that price or not. Or buy it from me, if I’m a seller. All that’s got exactly and absolutely nothing to do with HFT. Except to the extent that an HFT order might be on the other side of my order, which is fine with me or any other buyer or seller.
My orders (and all orders) are also executed in microseconds. Just like the HFT guys.
A ridiculous .25% tax on securities transactions wouldn’t just wipe out HFT, it would wipe out market makers (do you even know what they are or what they do?) and market liquidity in general.
That’s not a good thing. Not for you. Not for me. Not for anyone.
Instead of a typical .01 bid/ask spread on the average $70 Dow Jones Industrials stock, the spread would turn into 20 cents or so, enough to cover the .25% tax. With a lot fewer shares bid or offered on each side. When I say a lot fewer, I mean 90% fewer. Or worse.
I guess very thin, much more volatile markets are OK with you. You seem to think that securities still trade in 1/8th point (12.5 cent) increments. And that it’s OK to severely impair liquidity and drive most trading off-shore, which is what would happen.
Not to mention that 100% of this goofy tax would be entirely paid (to the extent anyone pays it at all) by the U.S. retail public. Do you also want to return to the days of fixed commission rates?
I pay no more than 1 cent per share to buy or sell (which is actually very high, I’m just a retail investor with a mid 6-figure account.) That’s down from 100 times that back in the fixed commission rate days of the ‘60s. If I wanted to trade more frequently, I could easily trade for .1 to .2 cents per share. Or less.
It’s unfortunate that you and others on this thread don’t know how markets actually operate and then sound like so many socialists when it comes to Wall Street.
Tax ‘em! As if any such .25% transaction tax wouldn’t be paid but by a very few U.S. consumers. Wall Street only pays taxes on their net income. And “Wall Street” would shortly be located elsewhere in the world.
This is not to say that I have a problem with Trump. He may know zero about economics and doesn’t really expect that any of his goofy tax/tariff/economic proposals will be enacted — maybe 10% of what he suggests, which would be bad enough — but I’d gladly vote for him over any commie/socialist Democrat (which is all of them.)
Ted would be better, but I’ll happily take them in any combination.
Wherever do you get this “tax-free” junk?
There’s no such thing, unless you own tax-free municipal bonds, which have nothing to do with hedge funds.
Organized as a general partnership (typical hedge fund organization) the gains of the general partner have the same tax characteristics as the gains of the limited partners.
It’s called a carried interest. That is, the limited partners own XYZ (whatever group of securities or commodities or whatever that may be) and agree to pay 20% (or whatever %) of the appreciation on XYZ over the course of a year to the general partner as a performance fee.
No performance? Performance fee is zero.
Positive performance? Performance fee is 20% of the increase in value.
The taxation of the gain on the “carried interest” is subject to the same schedule of rates as the gains are taxed to the limited partners.
The manager (general partner) probably also charges 1-2% per year to run the money, regardless of any gains.
The annual charges are subject to regular earned income rates, the performance fees depend on the asset(s) involved.
Ain’t none of them “tax-free.”
Well I’m even MORE FIRED UP about Trump’s position as I just came back from watching The Big Short, which was ENTIRE ACCURATE, as I lived through it, to the point of also looking up loans in Florida in that time frame (they were posted on the web, at least from one county, at that time).
I WILL NEVER DEFEND WALL STREET!
...and it is happening again, just watch.
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