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

[huh]

I paid around 10K in cap gains taxes last year and this bill would definitely take me out of the stock market all together. So I guess the gov't would feel fine about losing my tax revs and all the money I add into the economy with my spending.....and for what?

I had nothing to do with subprime mortgages and have lived beneath my means and this is how our "capitalist government" is going to reward me? I guess I should've opted for the $500,000 mcmansion rather than my modest 200K house!

 

[sprstpd]

Quote from huh:

I paid around 10K in cap gains taxes last year and this bill would definitely take me out of the stock market all together. So I guess the gov't would feel fine about losing my tax revs and all the money I add into the economy with my spending.....and for what?

I had nothing to do with subprime mortgages and have lived beneath my means and this is how our "capitalist government" is going to reward me? I guess I should've opted for the $500,000 mcmansion rather than my modest 200K house!

Well if you are a short term trader, most likely most of you capital gains will be offset by capital losses from another individual. So you probably don't contribute much in terms of taxes. I know it feels like you do, but in the grand scheme of things, you probably don't. If you are a long-term investor, then I take that back.

Don't you mean a 100k house now?
:eek:

 

[swtrader]

Quote from huh:

I paid around 10K in cap gains taxes last year and this bill would definitely take me out of the stock market all together. So I guess the gov't would feel fine about losing my tax revs and all the money I add into the economy with my spending.....and for what?

I had nothing to do with subprime mortgages and have lived beneath my means and this is how our "capitalist government" is going to reward me? I guess I should've opted for the $500,000 mcmansion rather than my modest 200K house!

for this entire decade, the government has been kicking the shit out of anyone who lived beneith their means, for the benefit of those who live beyond, via actual capital loss for conservative savings through dollar depreciation and ultra low interest rates

Now, they're pulling down the curtain of economic martial law because banks stuffed their books full of garbage causing a TWENTY FIVE PERCENT S & P CORRECTION, for the first time in 5 years, which was actually long overdue

 

[GermanTrader]

Jesus fucking Christ. I pay 50% of my income to the government. If you are a successful trader, you do too, unless you spend thousands to built complex entity structures. Yeah, it's half. Income tax, property tax, sales tax, gas tax, capital gains tax... No, I'm not counting the death tax.

Now they want to dick me in my trading. Time to look at overseas futures. There is always an alternative.

 

[Sky123987]

Quote from Jayford:

Do you have any idea what this would do to Wall St? It would effectively be done. All the discount brokers would be gone. All of em. Many hedge funds would be toast, and the big firms would be banks, period. The exchanges would be a fraction of their former selves. Lots of people in the industry would be unemployed.

BILLIONS would go overseas. The population of Dubai, which is already growing fast, would explode.

Government revenues from the industry would plummet!

Raising cap gains is almost as lame. Guess what happens to revenues when you raise cap gains rates? They drop. This isn't Laffer Curve theory stuff as in income tax, this is fact. Transactions drop. This was proven both last time rates were raised, and again when dropped. Obama even acknowledges this happened!

Raising either of these taxes is lame, but the transaction tax is probably the dumbest move in the history of taxes. I do not know what the Euro taxes are, but this could be a reason why so much trading is done here, and why so many euros have accounts with IB!

Yeah good point. I agree too

 

[listedguru]

Does anyone even know for sure if this is being debated as part of the current bailout package?

The scary part is that if we manage to 'dodge a bullet' this time this could be enacted at anytime in the future now that the idea has been floated publicly.

-Guru

 

[Cutten]

Quote from mokwit:

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.

Yeah, this is why I don't trade the UK markets despite living here. NO ONE daytrades UK stocks, they use CFDs. The liquidity in small caps is appalling because of this tax. It raises a pittance compared to the economic costs of much wider spreads, lower volume, and lower liquidity.

 

[drukes1234]

Quote from Cutten:

Yeah, this is why I don't trade the UK markets despite living here. NO ONE daytrades UK stocks, they use CFDs. The liquidity in small caps is appalling because of this tax. It raises a pittance compared to the economic costs of much wider spreads, lower volume, and lower liquidity.

Pittance brings up a very good point. IF this lunacy passes, small cap and microcap volume will EXPLODE and I guess there would be some sort of alternate trading like CFD's

 

[Susannah]

Perhaps we should start coming up with the reasons that Mr. Joe Citizen or Random Small Business would suffer because of this bill (actually make a list we can base a letter off of) and we could send those to our lawmakers? Face it guys, they don't care about a small number of daytraders, but the implications of that go beyond that. If we could all articulate that, I think it would go further than yelling at them.

A lot of reasons have been given already. If I have some time after market closes, I'll try to start the list if no one else has.

 

[Landis82]

Quote from smilingsynic:

So two wrongs make a right?

Grow up, already, and act like a PROFESSIONAL.

Your attitude is why this stuff is allowed to even get the slightest bit of attention, let alone gain momentum and traction. Just reading the kind of "language" in that absurd proposal should make every single AMERICAN cringe in their bones.

You need a reality check, my friend.

I sent letters and e-mails, and called into a local talk show this morning where I highlighted De Fazio's proposal.

Now go crawl back into your little make-believe "bubble".
Thank you.