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Message Subject "Fiscal Cliff" - Increasingly Likely & Desirable?
Poster Handle Anonymous Coward
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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
 Quoting: _KiLLuMiNaTi_


Well the guys making $5 million might be more likely to leave, since they have more contacts and might be more able to set up elsewhere.

The transaction tax would be more fair, but there's another thread today about how so many high earners have left the UK because they could do better under regulatory schemes elsewhere.
 
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