Originally Posted by MariconesUnited
I think this fear is greatly exaggerated. We're talking about 0.3% here. I don't think it would affect Joe customer. Much less than a direct tax anyway.
Why are these people being given a pass in the first place? Again, everyone else pays taxes on products and services bought and sold. Why the exception?
0.3% is HUGE. That's 0.6% round trip, plus another 0.6% to cover the market maker's taxes too. So 1.2% round trip. Many standard instruments involve a large number of hidden round trips per year - for example, the single most popular broad-market investment vehicle in the US, the SPY S&P 500 index fund, is in reality a mechanism for the public to hold the front month of the ES futures contract. The ES front month rolls four times a year. So this tax would cost a basic index fund investor in the most popular index fund in the US 4.8% per year even if they never actually bought or sold a single share of the fund.
It's so far beyond out of line as to be ridiculous.