Tax on Trades Should Be Part of Rescue Plan, Some Democrats Say

[sammybea]

Quote from stevegee58:

Guys, just because a handful of these yutzes sent a letter doesn't mean it'll find its way into the bill.

Think of how hard it would be to implement and how much delay it would add to the bill's signing. For those 2 reasons, it won't make it in.

The only way this passes is if Obama gets elected. No way McCain would ever sign this in.

 

[seasideheights]

Quote from stevegee58:



For those 2 reasons, it won't make it in.

That doesn't mean we shouldn't have our brokers yell about it now. There's no reason they couldn't implement that next month, next year, etc.

Send the URL of the story to your broker so they can give some pushback to that idea before it spreads.

 

[JORGE]

Quote from stinkyfelix:

Well, if a trader is only marginally profitable, this tax would be a killer and also cripple established traders.

Here is an example:

A marginal trader makes one round trip, buy and sell or short and cover each trading day. The trade size is $10,000.

The tax is $50 for the round trip, $25 in, $25 out.

There are about 235 trading days a year. So $50 times 235 days equals a staggering $11,500 of transaction taxes for the year.

This marginal trader is out of business...:eek:

Is this correct or am I losing my mind?

You are not losing your mind. I trade relatively average volume for a retail trader and I had 420 million in sales on my 1099 last year. Add in the buys, and I would be paying a 2.1 million dollar tax bill.

 

[trader_arb]

Quote from AAAintheBeltway:

What a surprise. Democrats want to raise taxes. Hell, why not make it 1.00%? Or 5%? Think of the revenue that would raise, since in their world taxes don't affect people's conduct.

This should, once and for all, cut the bullshit on this board about how Democrats only want to raise taxes for the rich (Who am I kidding? It won't).
Hell make it 5% and no more 1040 capital loss deductions.

 

[MKTrader]

Right. If Obama is elected, I'm just praying he'll pull a Bill Clinton and lean to the Center on economic issues. But nothing he has said or proposed so far gives me hope.

Is he man enough to stand up to the Pelosis and Boxers?

Quote from trader_arb:

This should, once and for all, cut the bullshit on this board about how Democrats only want to raise taxes for the rich (Who am I kidding? It won't).
Hell make it 5% and no more 1040 capital loss deductions.

 

[Cutten]

Lol, worst plan ever. Watch every futures exchange locate outside the USA if this ever passes.

Those 16 morons just committed political suicide.

 

[Cutten]

Quote from sammybea:

The only way this passes is if Obama gets elected. No way McCain would ever sign this in.

Why would a politican from Chicago sign a bill that would put the Merc and the Board out of business?

 

[swtrader]

it's a total anti-liquidity proposal

 

[GermanTrader]

Quote from Cutten:

Lol, worst plan ever. Watch every futures exchange locate outside the USA if this ever passes.

Those 16 morons just committed political suicide.

1. Taxpayers forget the wrongs of leaders who proposed legislation that didn't pass. Rabid democratic voters vote that way out of determination, not logic.
2. Politicians bring back such legislation and pass it in the middle of the night. The key is to even consider it in the first place. Done.
3. I will be trading those foreign futures exchanges, wherever they are, if America does for futures traders what it did for living-wage factory jobs.

 

[mokwit]

Quote from just21:

In Britain there is 0.5% on stock purchases but not ETF, futures or options. People spreadbet and trade contracts for differences which are not taxed.

Big drag on non institutional trading volume. This tax created the CFD market and reduced stock trading further. Now that IDIOT Brown, the Sub Prime Minister is talking about permanent anti shorting legislation to shift the blame from his creation of false prosperity that is now collapsing.

UK is OFF my radar screen because of this tax.