Financial Transaction Tax On Stocks. Who is liable to pay the tax on stock exchange transactions (TST)? A financial transaction tax is a levy on a specific type of financial transaction for a particular purpose.
Financial Transaction Tax: The City does not impose a tax on financial transactions, such as stock or derivatives trades, swaps, or options contracts. Financial transaction tax has been talked about in the past years in Europe. In other words, the transaction to issue shares of stock is immediately followed by many other transactions in which the money is used for some corporate purpose.
There are many countries in Europe.
At its most basic level, a financial transaction tax (FTT) is a tax imposed on the buyer or seller of a security at the time a financial transaction occurs.
I wrote this article myself. "While a financial transaction tax would be a progressive source of revenue, it would impact everyday folks, too, both directly and indirectly," said Garrett Watson, a senior policy analyst at the Tax Foundation, a right-leaning think tank. We present a stock market model that quantitatively replicates the joint behavior of stock prices, trading volume and investor expectations. Taxes are sometimes overlooked or considered after the fact, but capital gains (depending on the type of security and holding period) can have a big impact on investment results.