Stock Trading and Other Things

Should Washington tax capital gains from stock "trading" up the wazzou, and reduce taxes on dividends to zip?

Stock trading does nothing to improve a company, none of the money goes to the factories or warehouses. Stock trading is just a Ponzi scheme, aways looking for a bigger sucker than you to buy your stock.

Dividends indicate the company makes a profit and shares that profit with the shareholders.

So tax the capital gains on stocks 70-80%, paid out dividends are tax free.

What say you?

Public Comments

1. I see your point. However, if you knew you were going to lose 70-80% of your profits on an investment, then why would anyone invest? This would only discourage investors at a time when we want people to invest and show confidence in the system. As flawed as that system might be.

2. I agree in principle if not with the tax rates that you propose - not so much because of the benefit to the companies, but because it would encourage people to INVEST instead of trying to "day trade." Companies would be encouraged to pay dividends instead of engaging in stock price "pumping" and silly stock buy backs.


Unfortunately, "the system" (stock exchanges, brokerages, investment banks, etc.) would lobby against any such changes because they make too much money from trading.

3. Day traders often lose money...so taxing capital "gain" won't stop them.

The government is talking about instituting a .25% (not the decimal point) trading fee. If your trades are less than $100,000, you get the $250 refunded. If you trade more, you don't.

4. Good point. Perhaps short term CG should be taxed higher as it already is now. It would be nice to reduce the dividend tax. But, that only helps the established companies. Newer companies need the start up money which comes from stock investments.