The IRS needs to go! If we start taxing stock trades instead of income we can create more long term thing in the market. I realize we would not want to impact foreign investors from trading in our markets but this would be a way to derive some money from everyone who purchases stock, foreign or domestically.
Granted the folks who churn their stocks will not be in favor of taxing traded stock. But this will encourage investment to be for investments sake, looking more for growth over time, not the quick buck. If the trade is still lucrative enough after paying the tax then fine, everyone wins.
When we buy stocks for our 401k or other investment program, we don't buy and sell daily. We buy and hold. This buy and hold will be encouraged throughout the market. CEO's will work to make their companies more valuable over the long haul rather than for the next quarter.
AND, can you imagine having your whole paycheck, the GROSS instead of the NET. The countries economy will boom while taxes will be paid on Wall Street instead of Main Street.
Comments (5)
I like it. I'm not sure I've grasped the idea fully but it just might be worth a try.
You have got to be kidding right? So what do you suggest the tax be on each transaction? 2%, 5%, 8%, 10%? And is it on both the buy and sell side? And then do they also pay the tax that people who successfully invest in America (because THAT is what people who invest in the stock market are doing) already pay - the capital gains tax? Because if that is your idea what you will have successfully done is discourage investing in American Corporations and those investors will take that money and invest in something else - real estate or foreign companies.
And without trying to be disrespectful to "hallnator11" not grasping an idea or being familiar with an issue yet still voting to support it or pass it is very dangerous.
Actually the idea is to pay a tax, say 1% when you purchase the stock. The seller pays nothing. If the 1% means that you don't believe the stock is worth 1% more then you shouldn't buy it anyway. But remember the stock is sold by the company only once. Why don't we discuss you making direct purchases from a company and whether or that should be taxed. Many people obviously believe this is a tax on the company who's stock the investment is in, the tax is on the sale of the stock just like you are charged tax on the hammer you buy at the hardware store.
We need to convince everyone the FairTax will work. Don't give up on the idea. Talk to congress loud and often.
Thank You michelennon. I won't take offense but "Looks Promising" isn't a "Yes" its a "maybe it should be considered".
So this is a "sales tax"? interesting.