The work of the Stock Exchange

Bibliographic data

Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

610 APPENDIX by stock brokers or by dealers in stocks, but by investors all over the United States, and particularly by small investors; that the tax in its present form falls inequitably upon different stock transactions—a defect which cannot be practically remedied; and that the tax impairs the mobility of American capital and the American machinery of credit—a result carefully avoided in the less wealthy but competitive European centers of credit. In this country, a Federal stock sales tax has been in force during the years 1794-1800, 1812-18, 1862-70, 1898-1902, 1914-16 and 1917 to date. Similar taxes on stock sales and transfers by states of the Union were inaugurated in 1905 by New York State, in 1914 by Massachusetts, and in 1916 by Pennsylvania. The U. S. Internal Revenue receipts from the Federal tax on stock transfers will be found in Appendix IIb. Stock-brokers, of course, pass the tax back directly to their cus- tomers; this practice indeed is compulsory under the Constitution of the Exchange. Dealers in stock indirectly yet effectually do the same thing by widening the “span” between prices at which they will buy and will sell. Thus the burden of the tax really falls upon investors. The tax is based upon a 2 cents per share charge on each share of $100 par value, and, scaling down, 1 cent per share of $50 par value, 15 cent per share of $25 par value, etc. No-par shares are arbitrarily taxed at the rate of $100 par shares. These taxable values have in practice little relation to market values, and thus many serious inequalities in the tax rates arise. Recently two $100 par shares were taxed just alike, though one sold in the market for $1,400 per share and the other for $5 per share. Comparison with European stock sales or transfer taxes estab- lishes the following facts: (a) taxes on the American security dealer are the highest in the world; (b) America is the only country which taxes the professional security trader as heavily as the investor; (c) while the American investor seems to be taxed lightly, his burden is really heavy because of the indirect burden of the tax upon the dealer which is shifted to him. Abroad, the tax as it applies to dealers is light enough to be absorbed by them, thus freeing investors from this heavy indirect tax burden. European security taxes, however, differ considerably from ours, not only in respect to rates, but also to the particular security opera- tions upon which they are imposed. The British tax corresponding to our stock sale and transfer tax is imposed upon the transfers of registered issues, but not upon their sale; it is always referred to as the “transfer tax.” The British have established a compensating tax

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