Trade Transaction Tax - The Death Of All Us!

so here are my initial calculations. let's say that i was to enter on usd chf with 3000 units. my risk is 51 pips=20 USD. 0.0005*3000=1.5 USD.
so we have the risk of 20USD and the cost for that transaction besides the spread becomes 1.5 USD. the spread is 2 pips=0.8 USD. from this we can say that the spread will more then double. this breaks a lot of trading strategies. i would have preffered to increase the tax on profits but not on transactions.

Never mind the tax....spreads will be up to 500% larger (by some estimates) due to liquidity reducing radically.

Anyone fancy trading GBP/JPY with a 25 pip spread plus tobin tax !

i found a comment which i liked here. http://www.businessinsider.com/sarko...actions-2011-8


this is the actual comment:
Rhone
FTT is a net negative revenue tax. Germany got rid of the tax years ago for that reason. Now they want it back? The study from The Independent Budget Office of New York City reveals that a financial transaction tax would be net negative revenue and result in substantial economic and job losses. The government of Canada's meta-study has found the same results. Sweden's short-lived experiment with FTT: The Swedish government predicted transaction tax revenue from bonds alone would raise 1.5 billion kroner. They got just over 3 percent of that. Because of the tremendous drop in revenue from the loss of financial and economic activity and job losses, the actual total tax revenue from all financial instruments was negative. The FTT in the UK is passed down to and payed only by individual investors. If the UK's tax were to be removed, net revenues would be several billion pounds more. Removal of stamp duty is meeting fierce resistance from the exchequer that is employed to collect the tax.

Who pays this tax? IMF states in the Final Report For The G-20, June 2010 about the financial transaction tax, "Its real burden may fall largely on final consumers rather than, as often seems to be supposed, earnings in the financial sector..."

Germany is invading the UK a different way this time. France and Germany repeatedly threaten the UK, the second largest financial center, to join them and add another tax. This tax is the destruction of capitalism. Hitler's 1922 Munich speech: "Capitalism as a whole will now be destroyed, the whole people will now be free. We are not fighting Jewish or Christian capitalism, we are fighting every capitalism: we are making the people completely free." Just like Hitler.

London will never accept it, (they are No. 1 in Forex Trade worldwide)...US already rejected it, also Canada...So Merkel and Sarkozy would need to go alone...with some other populist governments...
Net result: it will destroy a big chunk of Frankfurts business...`(Number 1 in continental Europe financially...)..Wonder if they can get that money back from the tax ??
Originally Tobin´s ideas are sweet, so it will be used for: "environmental projects ...education, etc"
All money from the "bad speculators"... and the "bad markets", that give the politicians "bad records" when they borrow so much it´s virtually impossible to repay.
But stupidity rules the world...
By the way, lotery speculation´s just fine (and Tax free), sure, in Germany they own the shop, and the monopoly of the business...

Yes, anything below the hour chart will be virtually impossible...only low spread pairs to begin with...and mostly 4H, day and weekly, PROVIDED they limit the tax to 0,05/...anything higher than that...mmm...we will need to look for another job....

Hello guys,

Is it legally to take double taxes, profit tax on financial tranzactions and a tranzaction tax (even if you lose money from the trade)?? I don't know if you have an income tax for the profits obtained from financial trading in your country...but we have (16%)

Doctortyby

haha, first of all the question if it is legal or not is ridiculous. If the legislators agreed to tax something, then they pass a bill and it becomes legal. It's as easy as that.

Normally you have on virtually all products a value added tax and at the end of the year income tax / corporate tax. I think only financial products have been exempt of a VAT.

Be happy that it's only 16%. In some countries it can be up to 50%.

Of course THEY make it legal if they need to. Maybe it would have been more appropriate to ask if it is moral or ethical, but it wouldn't make any difference for the laws.

Taxing has nothing to do with morality. Is it moral to have an income tax, a corporate tax, VAT, property tax, wealth tax, car tax,... You get taxed so many times already, why would one more tax make a difference?

It is not moral and not amoral, it is neutral. It's just a tax. You want to continue to enjoy the living standards your country provides? Well, the state needs money to be able to provide all that. Be it infrastructure, free health-care, free schooling, free university, a state pension, safe roads (police & firemen)...
Taxing is not too bad to get all that.

Of course my american friends will argue that this is socialist and thus not good

Of course my american friends will argue that this is socialist and thus not good [/quote]

Well , hospitals are good, problem is taxes in the hand of corrupted politicians married to lobbys, like weapons and oil and anti environmental industries...

Of course, some Republican friends would call me a communist...specially if the hospitals were meant for the poor...
Tobin tax won´t help the poor....

Once heard a wise man say...you measure a government, by the way it treats the weakest in society...like in a good lovely family...

Over here where I live, a public hospital, that we graciously paid for with taxes, has been on standstill for nearly 15 years now, as a half done constuction site.

The reason? The guys that own the private hospital around the corner have in their pockets their close friend and government oficial, which is handsomely paid to "slow down" the finalizing of the public hospital.

Taxes are not neutral for the simple fact they are put in place by corrupt people and yes, many a time for inmoral reasons. At least where I live

Taxes are still neutral. It depends what the politicians or the government does with the tax. Politicians are not neutral, but taxes are.