Hacker News new | ask | show | jobs
by joesb 3904 days ago
์So every broker company who makes profit on 0.05% transaction fee is going bankrupt, and no more high-volume low-profit business.
1 comments

I assume you write this as a bad thing?

Its better for economy if brokers would focus on long term trades. Also usually high-volume low-profit businesses are the ones that are arbitrating prices and often are just middle man. No need for that. There is a way around. Obviously there would be FEW businesses that would be affected and need to change the way they work, but this comes always with any tax changes.

Anyways, I said all revenue that hits your account. Brokers usually don't keep their money in bank accounts, but in investment accounts, right? Until the money hit their actual bank account they would pay null on trades. So they would pay tax on all withdrawals and payouts to customers.

I assume you write this as a bad thing?

I don't know about you, but I really like what Amazon provides to me, and am quite glad corporations like it aren't strangled by our tax code.

If the whole chain of production and sales would be relieved from paying accountants and being charge stupid tax, then the overall prices would fall. You give me an example of Amazon. Would 3%* of overall cost added to the end product be higher than 3 companies sustaining their accounting teams going over taxes etc. + you required to pay sales tax? Revenue tax = no sales tax. Still think it would be more expensive?

1 very low tax to replace all the taxes from the producer to customer seems like much better option than being "not strangled" by current tax laws.

*3% assuming there is producer, distributor/owner and Amazon in the chain.