Chapter
The Power of a 0.1% Sales Tax on Every Share Sold with Capital Gains Tax Eliminated
37:44 - 42:01 (04:17)
The implementation of a 0.1% sales tax on every share sold, coupled with the elimination of the capital gains tax, would be an effective way to regulate high-frequency trading and generate revenue for the government.
Clips
Long-Term Capital Management borrowed $125 billion on the $4.8 billion of capital they had and leveraged themselves up 26 times, creating 60,000 trading positions worth $1.4 trillion which could have caused the whole economic system to collapse without a bailout.
37:44 - 39:03 (01:19)
Summary
Long-Term Capital Management borrowed $125 billion on the $4.8 billion of capital they had and leveraged themselves up 26 times, creating 60,000 trading positions worth $1.4 trillion which could have caused the whole economic system to collapse without a bailout. All of it was done with synthetic margin, no actual capital was involved.
ChapterThe Power of a 0.1% Sales Tax on Every Share Sold with Capital Gains Tax Eliminated
EpisodeE19: Breaking down Robinhood's GameStop decision: Why did it happen and how can it be prevented in the future?
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The implementation of a 0.1% sales tax on every share sold, combined with the removal of the capital gains tax, could generate a significant amount of revenue.
39:03 - 42:01 (02:58)
Summary
The implementation of a 0.1% sales tax on every share sold, combined with the removal of the capital gains tax, could generate a significant amount of revenue. In fact, if a 10 basis point tax on short-term trading had been passed in 2018, it would have resulted in almost a trillion dollars of revenue.