Tuesday, August 09, 2011

Taxes for goods not stocks

When I buy goods and services, I Pay taxes. Even when I get paid for my labor (employment), government takes taxes. However, when I buy stock of a company (I become part owner) of a company, I do not have to pay taxes at all. (Today, I pay taxes only when I sell and make a profit on the sale, I need to pay tax).

Recommendation: Tax the sale of shares of companies.

Benefits:
  1. Gets more money in to US Treasuries
  2. Reduces the high volatility in stock prices
Downsides:
  1. Lower trade volume
  2. People may claim, that's not capitalism
Middle grounds:
  1. Charge on the sale of shares on any company that claims they are too big to fail
  2. Charge people/companies that sell/buy more shares (day traders)

Rant from a person who lost his job during 2008 recession: "The Companies who took my money (US Tax dollars), took my money, my job and my home with it. When things are turning around, the people who came for arms on my tax dollars are still keeping their jobs and my money - while I still suffer with no money."

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