Stock Market question ....

[Telstra]

Do they pay any tax when buying or selling a stock ??
If not, why not ??

 

[theworldwithout]

There's a capital gains tax.

 

[Telstra]

There's a capital gains tax.

No, i mean every transaction should have a tax.
Example:
if you buy $100 of stock, you pay 5% or 10% of the stock

 

[jjonn3]

You pay a Capital Gains tax when you sell stock on the profit you made (sale price of stock minus the original purchase price).

Of course the capital gains tax rate is lower than most income tax rates - so the people wealthy enough to earn much of their income from stock trades pay a lower rate.

 

[KaraBulut]

No, i mean every transaction should have a tax.
Example:
if you buy $100 of stock, you pay 5% or 10% of the stock

In some countries, yes.

In the US markets, no.... at least not yet.

 

[offthewall14420]

Taxes are for suckers.

 

[Telstra]

Taxes are for suckers.

No, if you tax,
People don't sell and buy like crazy in the same or the same hour or the same second,
That would make the stock market more stable ??

 

[cityboy-stl]

Taxes are for suckers.

That's how you end up in jail for tax evasion.

 

[cityboy-stl]

No, if you tax,
People don't sell and buy like crazy in the same or the same hour or the same second,
That would make the stock market more stable ??

Some are talking about a penny-a-trade (not share...trade) tax. That makes a lot of sense to me. There are 10s of millions of trades per day. The individual impact is negligible but the overall amount in taxes received is quite a bit. I don't think it would have any effect on market stability however since these days most trades are computer driven. But that's a guess on my part.

 

[offthewall14420]

That's how you end up in jail for tax evasion.

No, that's the type of positive attitude of winners who end up in the White House or running multinational corporations.

 

[cityboy-stl]

No, that's the type of positive attitude of winners who end up in the White House or running multinational corporations.

OK I get your drift. That is correct. I thought you were talking about we "normal" folk who must obey the law.

 

[rareboy]

Some are talking about a penny-a-trade (not share...trade) tax. That makes a lot of sense to me. There are 10s of millions of trades per day. The individual impact is negligible but the overall amount in taxes received is quite a bit. I don't think it would have any effect on market stability however since these days most trades are computer driven. But that's a guess on my part.

A penny a trade is negligible...but could add up, I suppose.

The question is whether you should be able to tax both the sale and the gains.

I see no reason why not.

 

[cityboy-stl]

A penny a trade is negligible...but could add up, I suppose.

The question is whether you should be able to tax both the sale and the gains.

I see no reason why not.

http://www.nasdaqtrader.com/Trader.aspx?id=DailyMarketSummary

Volume on the Nasdaq alone was 13,601,097 trades just on May 31, 2019. That's $136,010.97 in tax revenue in one day from just one exchange market. Yes...it adds up.

 

[Alnitak]

There is no pay-as-you-go for capital gains in the US like there is for sales tax. All non-employment taxes are paid quarterly and the rules are insanely complicated. If there is a net loss from investments, then no taxes are owed on any security, and the loss carries over to the following year.

 

[Telstra]

I think tax every transaction would prevent market speculation and prevent stock market crash ?

 

[offthewall14420]

I pay taxes. No way around it in the long-run unless becoming very wealthy in the meanwhile.

 

[KaraBulut]

I think tax every transaction would prevent market speculation and prevent stock market crash ?

Unlikely since there's already a brokerage fee associated with many of these buy/sell transactions. It hasn't stopped speculation.

 

[Telstra]

Unlikely since there's already a brokerage fee associated with many of these buy/sell transactions. It hasn't stopped speculation.

And who keep the fee ?
The fee should belong to the state to use it for infrastructure ... etc

 

[Alnitak]

I think tax every transaction would prevent market speculation and prevent stock market crash ?

There is no stopping the booms and busts of markets. We are due for one about now by the way - in America.

 

[gsdx]

And who keep the fee ?
The fee should belong to the state to use it for infrastructure ... etc

Brokerage is a business. Their fees are their wages. They pay taxes on those wages.