As I have noted in several posts in the recent past, Congress is getting closer to taxing certain securities transactions. The bill proposes a .25 percent tax on the sale and purchase of financial instruments such as stocks, options, derivatives and futures. Half of the proceeds would go to reduce the deficit and the other half of the proceeds from the tax would be used to create jobs. Retirement accounts would be exempt from the tax. Unions, such as the AFL-CIO and SEIU are in favor of the tax since they believe the tax will not have an impact on the average investor.
Who does Congress and the unions believe will pay the tax? The tax will be passed on to all investors. It's just like saying a company pays taxes. Companies do not pay taxes, they collect them and pass them on to the government. The taxes become a component of the cost of business that is passed on to the end consumer. The Congress and White House need to cut spending. Higher taxes do not stimulate job creation.
The recent actions out of Congress do not surprise me given the lack of business experience in President Obama's cabinet.
Who does Congress and the unions believe will pay the tax? The tax will be passed on to all investors. It's just like saying a company pays taxes. Companies do not pay taxes, they collect them and pass them on to the government. The taxes become a component of the cost of business that is passed on to the end consumer. The Congress and White House need to cut spending. Higher taxes do not stimulate job creation.
The recent actions out of Congress do not surprise me given the lack of business experience in President Obama's cabinet.
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Chart Source: InfectiousGreed
1 comment :
We independent small fish traders must ban together to stop this. Trading is not Wall St. corruption. For every trade there is a buyer and a seller. A clean deal.
This tax would be totally misguided. It would cost me $50K or more per year. And although I trade, I am not rich by any means. If I can make a decent middle class income from trading I am happy.
We must unite and stop this!
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