Why are secondary stock exchanges taxed?
Under NESARA, all income and capital gains taxes are eliminated. However, NESARA does impose a nominal tax on secondary stock purchases. That tax is 10% of the sales tax rate, or as currently written, 1.4% of the purchase price. Therefore, selling 1 share of stock at $100 would yield a sales tax of $1.40; 100 shares yield a tax of $140.00. The tax is in addition to brokerage fees, commissions, etc. This is a fair tax, largely paid by wealthy people just relieved of income and capital gains taxes. The tax is low enough to prevent capital flight from the country and high enough to raise substantial amounts of revenue. More importantly, this tax discourages market speculation, the constant moving of money to make money in the short run rather than into long-term productive investments. Long-term investors are largely unaffected by this tax. NESARA distinguishes between initial public offerings and secondary transfers of stock. NESARA encourages new commercial investment because initial is
