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View Diary: Warren Buffett calls for A Minimum Tax for the Wealthy (107 comments)

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  •  Dallasdoc - any transaction tax would be paid (4+ / 0-)
    Recommended by:
    PatriciaVa, a2nite, elwior, radarlady

    by the buyers and sellers of securities, not the brokerage firm that conducted the trade.

    I favor a transaction tax although the rates need to be very small and thoughtful. You can't charge 1% if someone is purchasing a short term note that pays 1% interest. It would also be best if the tax was done in conjunction with other money center countries so that we don't change trading patterns. A major shift of trading from New York to another country would hit NYC very hard.

    "let's talk about that"

    by VClib on Mon Nov 26, 2012 at 08:55:28 AM PST

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    •  Brits have an 0.25% stock transaction tax (3+ / 0-)
      Recommended by:
      elwior, VTCC73, radarlady

      Hasn't hurt the City of London, although the Conservative government's austerity policies certainly have.  The French are discussing a tax too, though I don't know the details.

      I think a slightly lower tax on all stock, bond and derivatives transactions would be very salutary. It would collapse the value of derivatives contracts instantly, so people would be more likely to only buy them for good reasons -- not for simple gambling.

      Citizens United defeated by citizens, united.

      by Dallasdoc on Mon Nov 26, 2012 at 09:16:28 AM PST

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      •  Not true, London has been hurt badly (1+ / 0-)
        Recommended by:
        VClib

        with business going to Hong Kong and massive loss of tax revenue.

        Note that the term "City" refers to London's Financial market.

        From The Telegraph Hong Kong set to overtake shrinking City

        Hong Kong’s finance workers will outnumber those employed in London within three years as City job cuts shrink London to third place in the global rankings of financial centres.

        ...
        CEBR said London is losing its dominance due to “short-sighted over-regulation, penal taxation and banker bashing” as well as the “inevitable” economic shift to the east.

        The decline of the City will see the taxman take an estimated £30bn less from the Square Mile this year than it did just before the financial crisis, the think tank said.

        See London finance jobs to hit 20-year low

        Today's financial markets run off of computers, computers that can be placed in any country with industry favorable laws.  Countries that impose transaction taxes will just see a large loss of tax revenue, as the new revenue from transaction taxes will be tiny, while the old tax revenue goes away, with a very large loss of well paid middle class jobs, and the country becoming less important in the world economy.  

        The most important way to protect the environment is not to have more than one child.

        by nextstep on Mon Nov 26, 2012 at 10:05:22 AM PST

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      •  Dallasdoc - I think the fees should vary (0+ / 0-)

        I don't think there should be a uniform fee. The fee on stocks shouldn't be the same for bonds. or other securities. However, I think determining a thoughtful fee schedule wouldn't be that difficult. Hopefully if the EU initiates a set of fees, we can follow.

        There is a "Robin Hood" proposal floating around and that term should be dropped. We also shouldn't position this as a "payback" for Wall St. The federal government needs more revenues and this is one of the new taxes that we should implement. Positioning a transaction fee as a payback, or a Robin Hood tax just makes it more difficult to gain support in Congress.

        "let's talk about that"

        by VClib on Mon Nov 26, 2012 at 10:05:35 AM PST

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    •  I agree. The SEC and other bodies... (1+ / 0-)
      Recommended by:
      Words In Action

      ..have leveled billions of dollars in fines against US financial institutions.  These institutions have passed on the fines to their shareholders and customers.

      And when Senators attempt to cap the service fees that these banks can charge to consumers, as Senator Durbin recently did, the banks merely increase other fees/services to compensate for the lost income.

      The banks have a target ROE, and it's their obligation to reach it.

      Learn about Centrist Economics, learn about Robert Rubin's Hamilton Project. www.hamiltonproject.org

      by PatriciaVa on Mon Nov 26, 2012 at 09:29:17 AM PST

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