1/4% Tax on all stock trades pushed in NY Times today

Quote from Robert A. Green:

Taxes are headed higher on investment income on a number of fronts. It's been obvious that Democrats want Wall Street and investors to pay more._

The health care bill is being financed with a new tax on investment income, the 3.8% Medicare tax. _Will Section 475 MTM trading gains be exempt from this tax? I will cover this on my blog soon.
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Looking forward to reading this. Also, I'm assuming it has no effect on the 60/40 rule for 1256 contracts in that both sides of the equation are capital gains. Or will it be that the 40% which is considered ordinary income not be considered a capital gain in which the 3.8% medicare tax would apply?
 
Quote from PatternRec:

Looking forward to reading this. Also, I'm assuming it has no effect on the 60/40 rule for 1256 contracts in that both sides of the equation are capital gains. Or will it be that the 40% which is considered ordinary income not be considered a capital gain in which the 3.8% medicare tax would apply?
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Your assumption should be the case. Section 1256 contracts have lower 60/40 capital gains tax rates. The 40% short term capital gains portion is taxed at ordinary rates. Yet all capital gains are investment income. We will see if there can be any exemptions for Section 475 MTM trading gains and even trader tax status-related capital gains without MTM. Odd, they are leaving in the S-Corp SE tax loophole enjoyed by attorneys and computer consultants.

Again, investors are the ones being singled out here to pay for health care so skip a FTT as that would be a double charge.

Geithner is right to act first before Europe on a bank tax - in lieu of a FTT- and financial reform. He is correct in saying if the US allow Europe to take the lead it will be far worse for the competitive strength of our banks. France and Germany want to rein in UK And American banking dominance and in their view trouble making. The EU hedge fund proposals will decimate American hedge funds. Meltdown 2.0 with Greece is distracting Europe now. Probably the reason why Republicans may cooperate on fin reform. Global charities just went to the end of a long line. The US and Germany hate bailouts and every drop of tax money will only go to their own countries.
 
Quote from TraDaToR:

Now let's see if Mr "We need a global governance" Sarkozy will accept what is globally seen as a better solution... LOL
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:)

French minister Lagarde pushes for bank levy

http://www.thisismoney.co.uk/news/a...d=501658&in_page_id=2&position=moretopstories

Daily Mail
24 March 2010, 8:42am

French finance minister Christine Lagarde has predicted 'fast' international progress towards a new levy on banks aimed at curbing the risk of new financial implosions.

However, she admitted there are 'serious practical problems' that could derail a Tobin Tax on transactions - something France has previously backed.

'They are not necessarily mutually exclusive, but the one that is likely to progress fast is the levy on banks, rather than the financial transaction tax,' Lagarde told the Mail.

The comments just came ahead of Alistair Darling's Budget, in which the Chancellor is expected to express support for a mechanism forcing banks to foot the bill for financial crises.
 
Here's the text:

http://www.europarl.europa.eu/sides...+P7-TA-2010-0089+0+DOC+XML+V0//EN&language=EN

They can do as many resolution as they want.

Edit: link doesn't work. Second last link on this page:http://www.europarl.europa.eu/sides/getDoc.do?language=EN&type=TA&reference=20100325&secondRef=TOC

Here's the important part:

"29. Regrets that the financial sector has not fully learned the lessons implicit in this unprecedented crisis, despite benefiting from enormous state bailouts; welcomes in this regard the commitment of the G20 leaders at the September 2009 summit in Pittsburgh to ensure that the financial sector compensates for the costs of the crisis so far borne by taxpayers, other citizens and public services in both advanced economies and developing countries;

30. Firmly believes that taxing the banking system would be a fair contribution from the financial sector to global social justice; calls also for an international levy on financial transactions to make the overall tax system more equitable and to generate additional resources for financing development and global public goods, including adaptation of developing countries to cope with and mitigate climate change and its impact;

31. Urges the Commission to present a communication on how a tax on international financial transactions can, inter alia, help to achieve the MDGs, correct global imbalances and promote sustainable development worldwide;"
 
Quote from TraDaToR:

Here's the text:

http://www.europarl.europa.eu/sides...+P7-TA-2010-0089+0+DOC+XML+V0//EN&language=EN

They can do as many resolution as they want.

Edit: link doesn't work. Second last link on this page:http://www.europarl.europa.eu/sides/getDoc.do?language=EN&type=TA&reference=20100325&secondRef=TOC

Here's the important part:

"29. Regrets that the financial sector has not fully learned the lessons implicit in this unprecedented crisis, despite benefiting from enormous state bailouts; welcomes in this regard the commitment of the G20 leaders at the September 2009 summit in Pittsburgh to ensure that the financial sector compensates for the costs of the crisis so far borne by taxpayers, other citizens and public services in both advanced economies and developing countries;

30. Firmly believes that taxing the banking system would be a fair contribution from the financial sector to global social justice; calls also for an international levy on financial transactions to make the overall tax system more equitable and to generate additional resources for financing development and global public goods, including adaptation of developing countries to cope with and mitigate climate change and its impact;

31. Urges the Commission to present a communication on how a tax on international financial transactions can, inter alia, help to achieve the MDGs, correct global imbalances and promote sustainable development worldwide;"
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It sounds like they are taking the angle of making a Tobin Tax more for development aid, etc now. We all know pretty much everyone is backing a direct levy on the banks now (not a Tobin Tax) so I guess now they figure they can still lobby for a TT using the Social Justice argument.

IMHO the Tobin Tax is dead:)

-Guru
 
For some time, yes... IMO they will have so much trouble getting an agreement on bank tax and regulation that they won't even try to push it further when ( if ) it is adopted...

Add to that a bull market( knock on wood ) where mom and pops start to rebuild their wealth , anger against bankers diminishing and we are fine for 5 years.:)
 
Sounds like the Euros don't want to give up no matter the evidence that the trans tax will not work.



http://www.indepthnews.net/news/news.php?key1=2010-03-26 18:58:21&key2=1

BRUSSELS (IDN) - The European leaders failed to agree on the introduction of a levy on financial trading to compensate taxpayers for bank bailouts at the Spring Council meeting of the European Union (EU), which concluded March 26. The Heads of State or Government of 27 nations stressed instead that they must reach an agreement before the G20 Summit June 26-27 in Toronto.
 
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