The tax isn't on the PROFITS of the financial institutions it would be on the transactions made
Correct. And when you see how big the supposed receipts would be, dwarfing the profits of the financial firms, you realize that rather than just swallowing the expense, investors would stop trading or move trading offshore.
The job losses and reduction in market activity would result in little to no net revenue.
I don’t know about that... the costs would be passed along to the investors so it wouldn’t dwarf profits... it will be a hit though... that’s the point, get the bulk of the money from those profiting millions and billions off the market to make our schools better.
the costs would be passed along to the investors so it wouldn’t dwarf profits.
A huge percentage of those trades wouldn't happen with a 0.5% tax added.
it will be a hit though...
Only if your definition of a hit is, "causes massive jobs losses and raises very little revenue"
get the bulk of the money from those profiting millions and billions off the market
Those people are the ones who will avoid paying an extra $200 billion+ in a voluntary tax.
You do realize that a .5% tax on $1,000,000 comes to $5K right? Is that sounding like a game changer to you?
You do realize that a .5% tax on $1,000,000 comes to $5K right? Is that sounding like a game changer to you?
If I trade $1,000,000 of stock a day, and do well, maybe I make $200-$250K a year, after expenses.
Some people trade that much and are lucky to break even.
Now you've added $1.25 million in taxes.
How much stock am I going to trade now?