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View Diary: updated:The Horror! EU proposes introducing Financial Transactions Taxes! (101 comments)

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  •  there is no question that they (2+ / 0-)
    Recommended by:
    chimpy, Eric Nelson

    will come up with ways around taxation or to minimise it. The thing is to make these transactions too expensive to continue so as to reduce them significantly.

    "Hegel noticed somewhere that all great world history facts and people so to speak twice occur. He forgot to add: the one time as tragedy, the other time as farce" Karl Marx, The Eighteenth Brumaire of Louis Bonaparte .

    by NY brit expat on Wed Sep 28, 2011 at 11:15:14 AM PDT

    [ Parent ]

    •  Won't do that... (3+ / 0-)

      It won't do anything to stop many derivative transactions.  The thing is .01% is nothing to most people and on anything more than a day trade will barely be noticed.  Put it this way on a billion dollar transaction that is $100,000.  Buying a billion dollar derivative with the expectation of making 1% or $10 million, that $100,000 is a not issue.

      The business this impact is taking $10 million and making several trades with the goal to make 1% which is $100,000 and doing that over and over again.   If it takes 20 trades to do that you have traded $200 million and pay $20,000 in taxes on your $100,000 return.  

      So, a transaction tax is about the day traders and the guys trying to make money off volatility and Goldman Sachs ultra fast computerized trades that jump in front of its customers trades to steal a fraction of a percent on each trade.

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