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financial transaction tax

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Los Angeles, California Republic
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SMCJB View Post
Years ago a lot FTT talk was anti-HFT in nature. Now it seems to be aimed a lot more at 'Wall Street' and the people perceived to have the money. I think their goal will be to tax and reign in the excess and not destroy the capital markets. Obviously even a tiny tax applied to everyone would cause many markets to grind to a halt, and liquidity in all other markets to dry up considerably. So if we assume they don't want that to occur, there has to be exceptions. Question is who would get those exceptions? Market makers? Swap Dealers/Banks? Pension Funds? ECPs? Still don't think it happens, and even if it does most of the trading goes off shore.

Some on the extreme left probably do want to destroy the capital markets and others may want to reform them but have no idea what they are actually doing and could destroy them by accident (as was done in Sweden). I think HFT is a convenient target to zero in on but I agree the sentiment has now become broader. Ultimately, this is all part of a movement to restore some balance to wealth distribution in a country that has seen its middle class hollowed out by US corporations using foreign labor. Luckily, there are easier and less technical ways to do that then the FTT, so you may be right that the FTT never happens. If they couldn't pass it immediately after the Great Recession, they may not be able to pass it now. On the other hand, wealth distribution has only gotten worse since then.

Exchanges moving offshore sounds like a great solution, but is it really practicable? Will laws not be passed to find a way to prevent trading offshore exchanges. Of course, I suppose one could always get vps (and bank account) overseas and then we start getting into a whack-a-mole situation. In the long-term, I think @carofa may be right but that is not going to happen overnite.

Its disturbing when you have people like Robert Reich openly advocating for an FTT. This is from Senator Brian Schatz' twitter feed. He is the one introducing the FTT tax bill in the Senate, not that it will ever see the light of day there for now:

Know The Rules Well So You Can Break Them Effectively

Last edited by srgtroy; March 6th, 2019 at 10:09 PM.
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