4 ms·
What tax do these type of companies pay? I'm gonna guess they aren't paying the "retail" short term capital gain tax.
by mupuff1234 4y ago
What tax do these type of companies pay?
I'm gonna guess they aren't paying the "retail" short term capital gain tax.
- hajile 4y agoThese kinds of firms are one big reason we need a sales tax on stock trades. Stable, long-term investments are much better for the economy.
- missedthecue 4y ago-
- JohnJamesRambo 4y agoWhy should that be less?
- dcolkitt 4y agoYes, they pay short term capital gains taxed as ordinary income for equities. For futures they pay a blended 60/40 long-term/short-term rate, since all the futures trading is taxed that way (including for retail)
- zellix 4y agoPretty much, except for Susquehanna. See https://www.propublica.org/article/jeff-yass-susquehanna-tiktok-tax-avoidance https://www.propublica.org/article/jeff-yass-susquehanna-tik... for details.
- ocfnash 4y agoAssuming it is accurate, the final sentence in this article is especially notable.
- nly 4y agoThey'll have their cost centers in places like NY and London incorporated separately, making consistent losses, and then the arm doing actual trading will be in Bermuda or somewhere with 0% business tax.
- red2awn 4y agoUnder this structure, how are trading profits shifted to the cost centres to pay for operating expenses?
- JonChesterfield 4y agoLicensing IP would probably do it. Oh, the other direction - just make some returns in the place with operating costs.