I just know these idiots are going to manage to fuck this up too….
A trading tax is by far the best idea proposed for the financial markets in the last twenty years. If implemented properly, it will reduce our deficits, restore confidence in our capital markets, all but eliminate stock price manipulation, neutralize the blunders of our hopelessly inept regulators, and create a few jobs.
So it’s safe to say, it doesn’t stand a chance.
Here’s exactly how it should work…..
- Every single friggin’ trade gets taxed that takes place in US markets gets taxed 2%. Buy and Sell. No exemptions!!!!
- After six months, the transaction is reviewed. If the position has been held, the account gets “credited” back, with some limitations. Simple accounting (FIFO), again, no bullshit.
- After one year, the money credited six months prior is paid, unless there is an ongoing investigation in the security traded or the conduct of the market participant.
HFT? toast (unless Goldman wants to fill the government coffers)….Uptick Rule? don’t need it anymore. Uncle Sam gets a 4% cut off the top from the “organized crime” that has become Wall St. Zero negative impact on real investors.
Make no mistake, such action will undoubtedly produce a temper tantrum response from the spoiled brats who’ve been siphoning our nation’s wealth for the last fifteen years or so. You say market crash, I say price discovery. After the initial turmoil however, we will have a market that treats investors better than traders, instead of stinking, casino cesspool we have today.