Nader Tax Plan thoughts? 1/2 cent tax per dollar on every stock trade

Discussion in 'Politics and News' started by GWestphal, Dec 4, 2012.

  1. EagleKeeper

    EagleKeeper Discussion Club Moderator<br>Elite Member
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    So if all other taxes are repealed, where is the needed income going to come from?
    Or are you also proposing cutting the Federal government.

    What does sin have to do with anything; who defines it and wehre doee the authorization come from?
     
  2. yllus

    yllus Lifer<BR>Elite Member

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    What would be a good way to constrain high frequency trading. Or is it a problem to begin with?
     
  3. halik

    halik Lifer

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    Well what exactly are you trying you address?

    If people are worried about the messaging growth/latency arms race, you can either do micro auctions every so often (queue up orders 100ms, match them up and fill them) or the simpler way that many exchanges are doing now is minimum quote life (aka you can't cancel your limit order for certain amount of time)
     
  4. yllus

    yllus Lifer<BR>Elite Member

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    It's a potential issue in my mind for two reasons:

    1. Nobody will be able to stop an algorithm-induced crisis; we can only clean up afterwards. By necessity make decisions without human intervention, and two or more algorithms that square off can and will continue to destroy segments of the market because the next set of rules entered into them drive each other crazy. I recognize that markets now have built-in trading halts in case of too precipitous a drop, but that's addressing the symptoms and not the cause.

    2. Fairness. I accept that there are going to be organizations out there that can use their existing wealth to gain a significant information advantage on the rest of us, but to make that advantage literal in the form of computers with a level of connectedness that not even professional day traders can aspire to seems dangerous to me.

    I can't fully articulate why and for that reason I'm willing to acknowledge that this could be a fear of a boogeyman, but I would think that granting some people special market access based on their ability to pay can only lead in a bad direction.
     
  5. MooseNSquirrel

    MooseNSquirrel Golden Member

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    Hmmm interesting because had people implemented his airline safety ideas 9/11 would not have happened, at least not the way it happened.

    Oh and seatbelts.
     
  6. hal2kilo

    hal2kilo Diamond Member

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    Hey man. Live free or die! When I used to drive through New Hampshire in the fall, I thought the way they drive, it should have been Live free and die.
     
  7. ElFenix

    ElFenix Elite Member<br> Super Moderator<br>Off Topic
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    you do realize that the first part of your sentence is in conflict with the second half, don't you?
     
  8. zsdersw

    zsdersw Lifer

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    I don't know, but it's probably the same reason social conservatives think every answer to some objectionable behavior is to pass a law banning it. Or that we must keep existing laws even though they're totally ineffective.
     
  9. piasabird

    piasabird Lifer

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    I think this is too high. I would just use a transaction fee. No limit on the amount. one penny (or some other amount) for every transaction. Does not sound like much but there are millions of transactions every day.

    Who this hurts is those megatrader super computers that can make thousands of trades a minute.
     
  10. Thump553

    Thump553 Diamond Member

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    On the positive side, as far as retail "investors" go this is a tax on gambling. On he negative side , this wouldn't work well-it would probably drive a big chunk of stock trades to overseas markets, especially the the massive micro-second trades that the big boys use.
     
  11. hal2kilo

    hal2kilo Diamond Member

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    I agree, I'm not a fan of charging a percentage on the dollar amount in the transaction, but there should be a fixed amount even if it's only a penny on each transaction.
     
  12. Double Trouble

    Double Trouble Elite Member

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    When the only tool you have is a hammer, everything looks like a nail. In other words, if you're an idiot liberal and believe taxes can be used to solve just about anything, then taxes are the obvious answer to this supposed 'problem' as well.
     
  13. RampantAndroid

    RampantAndroid Diamond Member

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    Agreed. I get stock from my company, both as ESPP and as a performance award...I'm not speculating at all, I'm getting it and selling at a gain. A tax that is meant to punish speculating also punishes those just going about their lives.
     
  14. RampantAndroid

    RampantAndroid Diamond Member

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    You mean like gun control?

    Oh wait, that's the liberals.
     
  15. Acanthus

    Acanthus Lifer

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    It would have to be 5000 trades. No.
     
  16. GWestphal

    GWestphal Golden Member

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    I think Nader's plan is not per trade, but per dollar of each trade. But obviously it was just an idea and not a well thought out policy.
     
  17. shady28

    shady28 Golden Member

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    Do you people understand who the "big boy" traders are?

    If you don't, here's a clue: Its YOU.

    It's you pension plan.

    It's your 401k.

    It's your IRA.

    So, Naders big plan is to make them pay more to invest your money / pension etc.

    Want to guess who will actually pay for that? You don't really think it'll come out of the fund managers wallet do ya???
     
  18. iGas

    iGas Diamond Member

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    I think it is a great idea for frequency of less than 30 days hold on to the stock, and 31 days hold or longer are exempt.
     
  19. monovillage

    monovillage Diamond Member

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    Nader says that Obama is a war criminal and a worse president than G.W. Bush. I think we should all listen to him when he makes so much sense.
    http://www.huffingtonpost.com/2012/...riminal-worse-than-george-bush_n_1914154.html

    We should really bank on what this guy says.
     
  20. Acanthus

    Acanthus Lifer

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    Oh, well then that is stupid.

    You would want a tax that would be trivial to regular investing, but would slam HFT.
     
  21. 3chordcharlie

    3chordcharlie Diamond Member

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    The proposed rate seems high. Maybe even 5-10x too high to accomplish it's limited purpose.

    I think it *should* be a rate, not a flat fee, because I think the goal is to kill the profit of large and/or frequent trades based on very small price changes (i.e. 'gaming the market').

    Not really, the discouraged volume would mostly be day trading 'noise'. If the rate is set low enough, it shouldn't have an appreciable effect on investment trading.
     
  22. Gonad the Barbarian

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    Another stupid liberal idea just like seatbelts in every car. The correct solution is to simply let the free market be. Small investors can get overclocked i7's, fat internet pipes, and Redbull and do all the high frequency trading they want. There's your level playing field.
     
  23. zsdersw

    zsdersw Lifer

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    No, I mean things like "decency rules", anti-abortion laws, anti-drug laws, restricting adoption to only heterosexual couples, etc.
     
  24. Texashiker

    Texashiker Lifer

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    Why not allow the states to collect an 8% sales tax on stock trades?
     
  25. nehalem256

    nehalem256 Lifer

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    Because this would result in Black Monday looking like the Internet Boom