Will the transaction tax pass?
“It depends on how socialist the government wants to be,” a trader from one of the big banks told The Business Insider.
He was one of three traders debating the issue over drinks at happy hour last night.
They all say even though the .25% transaction tax on trades that was proposed to Congress recently seems like a small amount, it’s not.
“It’s huge!” one says.
The number is not necessarily what is important. Any tax, they say, in any amount on individual trades is killer.
If it does pass, the carnage will be heavy in high-frequency trading.
“Don’t you think maybe that’s what they (the fed) want to do, though? Stop the fast day-to-day trades because, you know…?” another one of the traders asks his friends.
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