Posted on 01/22/2021 5:25:22 AM PST by Red Badger
Sorry, I am still not understanding.
What you are saying would make complete sense if the tax was per transaction. But it is a percentage of the value.
GS trading large “blocks of shares” would be hit at the same percentage as a little guy trading small blocks of shares. The only difference is in how often they turn over their shares.
Again, the small guy have less trades per day/month/year so they would be hit less.
If I am not understanding some aspect of what you are saying please straighten me out.
I completely agree that in environmental regulations, safety regulations, labor regulations, compliance regulations, etc.... they are all designed by the big guys to raise barriers to entry for the little guys. I am just having a hard time seeing how this particular proposal does that.
If I step back and look at this from 100 yards it looks (and acts) just like a small tax on large transactions. Of course the RATs hate the idea that anyone else could possibly impose a tax on anything, so their answer is to impose another tax that they collect.
Hey Wall Street!
You backed Biden and people like DeFazio!
Embrace the suck!
I have read the same thing.
Anyone who thinks that the average retired schlub in Peoria is going to compete by paying $17/month for access to level II quotes needs to re-think that.
But, it will move the exchanges to a lower tax destination. New Jersey already threatened to do this and both NASDAQ and the NYSE responded by testing moving their servers to another state. If the US imposes a federal tax, the servers will move to London or possibly some small tropical island. Jamaica has a reasonably well-developed financial industry.
There are huge side benefits to NY being the financial capital of the world, but I have little doubt our politicians can kill that goose.
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