taxes
Lets talk about TAXES
Imagine 40 trillion dollars. That is what is reported that the stock, bonds, derivitives and assorted markets are worth. A 15% percent income tax is supposed to be paid on tranactions that produce profit from these markets. All of us pay a sales tax and income tax. Why should not these markets pay a sales tax also? A typical trade only cost about $15.00 dollars. Even if the trade is for tens of thousands of dollars it only cost $15.00 to do it electronically. Why is not there a sales tax on such a trade? I pay $11.00 a trade and I would gladly pay an extra buck to help pay for the infrastructure. You know that 40 trillion dollar mark I mentioned earlier. That whole infrastructure repair bill of the US to repair bridges will be paid for in no time and there will be plenty left over to balance the budget down the road. And we can repeal all gas taxes. All wealthy people will tell you that I am crazy. That what I have said is not true. That will be the first sign that I am on the mark. I'm going to push this message on every blog I can up until the election and God willing it will be picked up.
John
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John, I pay $14.00 per
John, I pay $14.00 per trade (roundtrip), but I already pay captital gains tax on any revenue earned. Are you saying that you want to tax me for every transaction, including losing trades, as well?
How would my broker pay for the added expense of having to collect from me, and then pay the IRS? What kind of a paperwork nightmare would such a system create, as not all equity purchases and sales are handled through a broker? How would Market Makers and ECNs be taxed for their transactions? How would mutual finds, and other institutional investors be taxed? What about direct equity exchanges and warrants handled in a split second on the floor? What about commodities, futures, options, and short sales?
Your idea looks good on paper, but I don't think that you've thought it through.