Obama to eliminate 60/40 tax benefit for dealers

It'll knock out the marginal players and allow the remaining dealers to pass on the cost to customers.

Marginal players, thanks for playing. Obama has decided you lose.

All the rest, congratulations. Lord Obama has decided you win.

YAY. Isn't this MUCH better than the big bad impersonal market, skill and luck deciding who wins and loses and how much.

I've been awash in this sarcasm since Bush started strolling down Fascism Lane and it's only gotten worse since Obama decided to go fly down that path at warp speed.
 
Quote from Angrycat:

Say, how many of you guys are actual dealers instead of retail traders? I don't know if this effects retail. Does it?
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slippery slope. once JC and his disciples figure out that the hated trader also has these tax advantages, they'll take it away. imo, it's not if at this point, it's when.

of course, i'm the ONLY losing trader in ET history, so for me, it won't matter...
 
FYI, this tax increase would apply to "commodities dealers within the meaning of section 1402(i)(2)(B)."

IRC section 1402(i)(2)(B) states:

"The term ''commodities dealer'' means a person who is actively engaged in trading section 1256 contracts and is registered with a domestic board of trade which is designated as a contract market by the Commodities Futures Trading Commission.

I am not sure what a "registered" trader is in this context. Seems that anyone trading as a member will be hit.
 
I'm not american, but isn't most daytraders paying "ordinary" income anyway when they chose "mark to market"?

Does the new law also mean self employment tax?
 
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