Please help me if my math is incorrect... For example, the SPY trades approx. 70 million shares a day at approx. $300 per share So, 70,000,000 shares at $300 each = $21,000,000,000 daily trading amount $21,000,000,000 x .005% = $105,000,000 per day in tax $105,000,000 x approx. 230 trading days per year = $24,150,000,000 annual tax So the SPY alone would need to pay $24 billion in annual tax?
Oh HELL no. For each transaction, there is both a buyer and a seller. 1/2%/side... a reasonable $48B/yr. So, what's that.... ~32 years for the SPY transaction tax to pay off $1.6T in college debt? What about the additional debts to be run up during those 32 years? (It's amazing how everything becomes affordable... if you can just tax enough things at high enough rate.) __________________________________
This view isn't even a socialist view of Bernie's. Wall Street should pay dearly considering they more or less help orchestrate the collapse that led to millennials in particular suffering one of the worst job droughts in the last century. They set back an entire generation with their horrible handling of the mortgage crisis and destroyed plenty of lives outside of millennials. They got away virtually unscathed (let's be honest a few billion in fines and ONE guy going to prison is far less scathed than a traffic ticket). The payment for their near destruction of the world economy should be in the TRILLIONS - this wouldn't even be enough. You are aware wall street has already securitized student loan debt right? These criminals have to be stopped before they bring us to the brink of economic collapse AGAIN. I'm not for a tax, I'd prefer bankruptcy discharge, but at least something is being talked about. I see you are a a neocon charlatan. The deep right has been in the pockets of wall street and corporate interests forever. Since when did "for the people, by the people" become a leftist view? The only way to attack the criminal cabal known as wall street is via taxes or laws, unfortunately. They have proven time and time again to be invulnerable to prison sentences. So the system must be fundamentally altered so they can't have their cake and eat it too. Something must be done to help people with this type of debt. Since people seem to not like the idea of allowing bankruptcy discharge of student loans (further punishing banks and wall street) this idea is the next best thing. You don't want to be around when the artificial floor holding 1 trillion dollars in student loan debt collapses. Student loan debt securitization, the fact it's eclipsing all other forms of debt at a record setting pace, and the unwillingness of old charlatans such as yourself to do ANYTHING other than bitch and moan about those damned avocado toast eating socialist millennials, will be a hot button issue for the next decade of elections. While I agree bankruptcy discharge is the ideal solution - I disagree that extending the time solves the problem. Employment numbers are heavily manipulated - and employment (having a job) and gainful employment (having a job that supports your life) are two different things. Millennials in particular are delaying major milestones in their life, and becoming less than half the consumer of previous generation. The facade of stability is going to collapse when boomers and gen X can no longer hold the economy up because, despite delaying loans, over half of millennials have almost nothing saved for retirement and in general are not consuming at anywhere near the rate of previous generations. If something isn't done (ideally, bankruptcy discharge to simultaneously punish both banks and wall street without additional tax), we are in for a world of hurt in less than two decades.
45,000,000 FOLKS WITH STUDENT LOANS and you pretty much eliminate HFT - how does that play out in an election
Nope. Try the root cause--regulators and politicians who forced banks to take on high-risk loans in the name of political correctness and "fairness." I know bank auditors who saw this unfolding well before the crisis. The fact they were packaged and sold as investments was just part of the game. https://www.businessinsider.com/the-cra-debate-a-users-guide-2009-6
Well, here’s a few consequences to further consider: transaction taxes are passed on like a VAT - Wall Street doesn’t pay for those taxes unless it’s their own proprietary trading; it discounts the ramifications of a freely made personal choice; why should someone who majored in a hard science and is fully employed pay for someone who majored in liberal arts and is chronically underemployed; there would be more alienation of working class voters by the Democratic Party. You can’t win a Presidency without winning the working class Rust Belt votes.
I’m curious as to how this would effect people’s investment funds/pensions. Seems like funds returns would have to drop and you’d just be simply offsetting student loans from future returns. Almost like paying off a credit card with another credit card.... https://www.google.ca/amp/s/www.for...unlimited-student-loans-drive-up-tuition/amp/ If that study has some merit, you’ll see tuitions increase more.
Probably gives us a Democrat Senate and they run the table in 2020. Ends all of the economically worthless trades and lowers that cost.
That's primarily the reason I prefer bankruptcy. I have had no problem paying off my student loans quickly because I made a thoughtful choice in major. Bankruptcy puts the punishment back on the banks, who lent to people without an ounce of due diligence. The Democratic Party is currently leading by a significant margin because they are the only ones talking about the issue. It seems Libertarianism is all but dead in the RNC (the people you'd expect to propose a pro-bankruptcy solution). Center-left guys like Yang and even Biden will pull majority of disenfranchised young Trump voters almost certainly who were a large chunk of the silent majority who got him his 2016 victory. The government didn't force them to securitize, package, and resell debt in the form of CDOs and other derivatives. Wall Street, in the end, is to blame for the collapse. Any sort of diversion from that is ignoring the fact bad loans by themselves don't collapse economies.