Talk of The Villages Florida - View Single Post - How to pay for all this new debt
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Old 04-10-2020, 12:15 PM
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blueash blueash is offline
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I am not suggesting taxing based on whether your trade generated a gain or a loss, or how long it was held or whether it is in a 401K or a Roth. I am suggesting a tax on the transaction itself. Hold your stock that you have. No tax until you sell it. When I used the term stock trader I meant the tax is applied to the person who is buying the stock or selling. I didn't mean E-trade where they would then "pass it on" to the user. I mean that investors is the same as stock trader in my suggestion.

I do believe that the company used to place the transaction should be responsible for collecting the tax, then they would send it on to the gov't. It would be no different than what now happens with your sales tax being collected at the point of sale then sent on to the gov't.

Example: I buy $ 10,000 of XYZ at 100/share. If Etrade charges a 4.95 trade fee. My Etrade account then will show that there was deducted $10,024.95 from my cash available. Etrade keeps the 4.95 and sends the 20 to the gov't. This is at the 0.2% rate.

Last edited by blueash; 04-10-2020 at 01:08 PM.