DEFAZIO INTRODUCES FINANCIAL TRANSACTION TAX ACT TO REIN IN WALL STREET AND GENERATE REVENUE FOR NATIONAL PRIORITIES

https://defazio.house.gov ^ | Jan 15, 2021 | U.S. Representative Peter DeFazio (D-OR-04)

[nitzy]

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.

[CurlyDave]

...With high-speed trading, they write computer programs that are actually able to see trades moving towards the markets. The programs get ahead of the trades, and they skim off of the trades...

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.

[Lazamataz]

Hey Wall Street!

You backed Biden and people like DeFazio!

Embrace the suck!

[CurlyDave]

There is a book out that basically claims that a difference of a few miles of fiber optic cable can give traders an advantage—and we’re talking the speed of light here. That’s how fast the trades are happening.

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.