President Joe Biden good tax revenue generation from stock, commodity and forex trading tax
The US deficit is projected to be at an all time high of US$2.3T by the end of 2021 according to cnbc.com
It looks like a never-ending deficit. Last time, during President Barack Obama's time there was a proposal for a stock tax but it was not implemented.
If we looked closer at the volume traded in the USA its shown at barchart.com as "All US Exchanges Volume Leaders".
When you add up the volume traded per day it is 3,730,234,332 shares per day or about 940,019,051,664 per year, assuming 252 trading days per year. If each share traded was taxed US$0.01/- the tax revenue generate would be
Tax generated per year on share trading
|Tax per share||$0.01|| or ||$0.02|
|Annual Tax generated||$9,400,190,516|| or ||$18,800,381,033|
The figures can be adjusted. For example the average share traded is US$30. So, for shares below $30 the tax can be set at $0.01 and the tax for share above $30 can be set to $0.02 or higher. For those shares traded outside the exchanges during non-trading hours the tax could be set at say $5 per share. Is $5 per share too high?
We have not even considered the tax revenue generate from commodities and forex. It has been reported that worldwide forex trading is about 35 times that of stock trades.
If I have to send someone US$10 to the USA I would not think twice if the US governemnt charged a one cent ($0.01) tax on the amount being sent as Western Union and the banks charge as much as 6% to 7% of the amount I send.
- Dr. Peter Achutha, 6th April 2021
PS: My apologies for not writing earlier as I had many website server issues to sort out as my sites were down. If there is anything else I will write some more.