Instead of an income tax how about a $1 tax on each share of stock sold on stock exchange?

Question

Please Pro's and Con's

Answer 1

You'd be penalizing investors in the stock market. They would invest their money in either foreign stock, commodities,gold or currency and avoid paying the tax.

Answer 2

If I bought a share for 0.30 cents and the price rose to $1.30. I sold it and got 1 dollar profit for each share and pay to the $1 tax for each share sold. Means the profit will be zero in this scenario.
What if I sold on $1.00, I have to fork out a 0.30 cents per share to pay for the tax. Seriously I can tell you there will not be any Pro but a lot Cons. In general, people will be pleased with no income tax, nobody will be so crazy to to buy stocks, corporations do not get enough cashflow to manage. Thus may have to bankrupt. Many workers out of employment. Economic in the country collapsed. Yah by that time you really need not to pay income tax because you will not have any income earned to pay for it. By the way, your question is very "interesting".

Answer 3

First all stocks have different prices. Your $1 tax would double the cost of many shares but only add a fraction of a percentage to Google or other large stocks. Secondly the capital raised by issuance of stocks helps businesses grow and hire people. Taxing seed money at the source will reduce investment significantly, create unemployment, and reduce the potential number of buyers. Once that happens it will be hard to sell your stock causing great devaluation of existing stocks. Sounds like a plan that could exceed the collapse of the stock market that started the Great Depression.

Answer 4

first of all, why are you concern to withholding on the sale of stocks? have you ever been advised through the IRS that you're concern to backup withholding? If $seven hundred became withheld for taxes, even if you receives any of it lower back once you document your go back will count number on your entire tax criminal duty and how a lot tax you paid in. Assuming that you'll properly be claimed as a depending, your filing requirement for unearned income is only $950. The tax will count number on the income that you realized on the sale of the stocks. that would't be determined from the preparation given, although. What did you pay for the stocks, and what did you promote them for. and how lengthy did you carry them for?

Answer 5

Income tax is much worse. It is called capital gains tax and it can be either your base tax rate or 15% depending on how long you have held the stock. Short term 1 year or less is like ordinary income; long term, one year or more it is 15%.

If you implemented your idea, twleve other taxes would have to be created to make up for the lost revenue.

Answer 6

it already exists, it's called a "capital gains tax". it's not on each stock sold but rather on the money made from the purchase of said stock. additionally, there are a number of stocks that sell for less than $1, so that would dissuade people from purchase them, thus, driving small businesses out of business, further making the rich corporations of america even more rich. and beyond that, if you did this, you're talking millions of dollars in taxes for the super wealthy so instead of investors placing their money in the hands of OTHER businesses, they'd just sit on it, which would again make the wealthy even more wealthy and the poor even more poor. c'mon man.

Answer 7

I suggest NO TAX on any Corn or Sugar Producers and on any Ethanol, Biodiesel Producers and on any Diesel Producers and on Toyota, Honda, Volkswagen or any other auto companies with cars running with Ethanol, Diesel, Biodiesel or Electricity.

Car Companies with billions of dollars in Losses like Ford or General Motors do not qualify.

I also suggest a $1.00 TAX on each time you use your credit card to pay for something and YOU DON'T PAY THE ENTIRE DEBT AFTER A MONTH.

Answer 8

Pros.....NONE
Cons............doesn't make any sense
( Just have to assume that the asker is under the very false impression that anyone invested in the stock market is one of those evil rich people .....nope they're just the people that give companies money so they can conduct the everyday business of your very normal life...y'know, like delivering your freakin' food, man....and gassin' up your veeeehickel,dude......oh yeah! an dat video game....OH! NEVER MIND

Answer 9

That's one good one. How about a 5 cent tax on each soft drink sold?

Answer 10

It wouldn't raise anywhere near enough money to replace the income tax.