Proposed Tax Bill Could Cause Big Problems For US Investors
Executive Summary About Proposed Tax Bill Could Cause Big Problems For US Investors By Cory A. Mitchell
Corporate Tax Bill
A proposed House of Representatives bill-HR 1068 would tax each buy and sell order by up to 25 basis points of the transaction value. While it is hard to say at this point whether the bill will be passed I encourage active traders and investors in US markets to do what they can to oppose this bill. -day traders and market makers who make money on thin margins already would be forced out of the market.
-65% of liquidity comes from short term traders squeezing small profits. If these traders leave for other markets, liquidity dries up and everyone suffers. Spreads widen, and transaction costs increase.
This cost is not going to be assumed by brokers, but rather by investors (the ones remaining). Trading costs would likely increase because mass liquidity allows for smaller charges per transaction. Decrease the number of transaction and brokers will raise prices to compensate.
-Price transparency and thorough analysis is generally reserves for high volume stocks. If you have every traded an illiquid security, you know that prices can be very random and hard to analyze. A decrease in volume would create this environment in many many more securities.
-Traders would avoid the tax, and hence the US market. This will pull funds out of the US economy and those funds will go into foreign countries.
-Companies are more likely to list on foreign exchange, or move their current listing to foreign exchanges so that their securities can be traded actively as they are currently.
-The tax will not generate the revenues expected by the government. Projections for profit are based on current market conditions, but the tax would impact market conditions and change them overnight. In effect, the money brought in would be nothing what is expected thus making the tax pretty much null and hurting a lot of people in the process.
Asinine decisions are being made all over the place in the current economic situations (and it was dimwittedness that got us into the mess in the first place), therefore it is more prudent to be proactive and than to sit on ones hands thinking this bill is too stupid to pass.
Ways To Save Money On Your Tax Bill Each Year
Executive Summary About By Ways To Save Money On Your Tax Bill Each Year Miguel Poza
No one wants to pay too much tax and if you are looking for some ways you can reduce the amount of tax you have to pay the taxman each year then take a look at the list of tax saving ideas compiled below:
1. Always try to make full use of your capital gains allowance that you are entitled to each year.
2. Ensure that you send in your tax return in before the deadline each year in order to avoid receiving a fine for filing your return late.
3. You can save 10 pounds off your tax bill by filling in your tax return online.
4. If you are a non tax payer then make sure that you complete a form at your bank or building society so that you do not pay tax on the interest on your savings.
5. If you are married, then make sure that any income you receive from investments is paid to the partner that pays the least tax.
6. Always check any calculation made by the tax man or any tax code given to you as they can make mistakes.
7. Always keep your tax records in a secure place, up to date and in good order as it is possible to get fined by the taxman for not keeping tax records.
8. When choosing your company car, go for a car with low carbon emissions as the amount of company car tax you pay is based on its carbon emissions.
9. Try to take full advantage of the tax incentives given for taking out a pension.
10. In order to reduce inheritance tax liability on your estate in the future, you could make some gifts whilst you are alive to the people you wish to inherit that money.
11. You could arrange to make a will which can be used to reduce tax on your estate and make things easier and clearer for everyone when dealing with your estate.
12. If you are a taxpayer then a good idea is to make full use of tax free savings schemes such as ISA schemes.
13. If you would like to give to charity then you can ensure that the tax goes to charity by using Gift Aid.
14. If you find that you are paying too much tax on account, you can request to pay less on account through the taxman.
Well that is all the tax saving tips I have for you in this article and if you try to do some or all of these things it will be worth the effort as you will be able to save a worthwhile amount of tax in the future.
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