For high-frequency (or mid-frequency) trading, 1% of the transaction is 3 or 4 times the expected value from the trade.
I’m very much not sure discouraging HFT is a bad thing.
this probably doesn’t matter unless the transaction tax REPLACES other taxes rather than being in addition to
I imagine that it would replace/reduce some of the other taxes so the government would get the same amount of money.
it encourages companies to do things in-house rather than outsourcing or partnering, since inside-company “transactions” aren’t real money and aren’t taxed
But normal taxes have the same effect, don’t they?
I’m very much not sure discouraging HFT is a bad thing.
I imagine that it would replace/reduce some of the other taxes so the government would get the same amount of money.
But normal taxes have the same effect, don’t they?
It’s not just the “bad” HFT. It’s any very-low-margin activity.
Nope, normal taxes scale with profit, not with transaction size.