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Message Subject "Fiscal Cliff" - Increasingly Likely & Desirable?
Poster Handle _KiLLuMiNaTi_
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Simple solution: Financial Transactions Tax. A .001% fee on all stock, commodity, and FX market transactions would bring in over a $Trillion per year.
Effect on markets would be negligible, and would reduce computer HFT (high frequency trading) that presently controls and distorts the markets. Since everything is automated, the tax could be automatically deducted and electronically remitted directly to the IRS. Problem solved.
 Quoting: Anonymous Coward 2164937

The amount matters, and if I recall correctly, about 20 years ago James Tobin was recommending a tax level of .01%, so your suggestion is at least milder than that.

Still, the effect on markets would not be negligible. For example as you rightly identify, it would drive away high frequency trading. It wouldn't shut it down altogether, some would survive and move to different jurisdictions. It would weaken NYC (and Chicago, Philadelphia, etc.) in its ongoing battle with London and potentially other places (Shanghai?) as the world's main financial city.

And to the extent it reduces taxable trading, the tax receipts would be reduced too. Don't calculate that on current trading volumes, since you say, even boast, that those volumes would go way down.

The rich people who are successful in financial markets consume a lot of goods and services, many of them domestically. If they move out of country, you may say good riddance but do you mean it?
 Quoting: Anonymous Coward 28008747

What is the definition of "rich people" ?
 Quoting: _KiLLuMiNaTi_

Well, "rich people who are successful in financial markets" might be those who make, say, $200,000 per year and up in trading-related activity. These are people who might pick up and move to London, or Singapore, or somewhere else following the trading business. Obviously some are much richer than others. In NYC an income of $200,000 per year is somewhere in the middle class.
 Quoting: Anonymous Coward 28008747

And I dont think its fair to tax someone earning 250k a year the same as Bill Gates
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