The Puerto Rico Tax Break can only make sense for Futures/FX Traders

[Daal]

I do not understand what is this all about.

If you have winning year, you will pay X% tax. If you have losing year you will be able to save loss for next winning year and claim against it. So it is symmetric and all you need to do is increase bet size.

Say if tax is 33%, then your bet size has to increase from 100 to 150 to gain what you would in 0% tax place. Losses will be subsidised by tax credits.

That is not such a big deal , or am I missing something ?

Only difference would be for a person that does not use leverage as cant increase bet size beyond certain point.

The bigger your leverage the more market/black swan/blowup risk you are taking. In addition sometimes you can't take really big positions due lack of liquidity or HFTs who will detect you and increase your slippage costs

 

[Nighthawk]

You must like John Paulson:

http://www.bloomberg.com/news/2014-...to-rico-to-become-singapore-of-caribbean.html

I think, I will open a boutique in Puerto Rico, too. I heard the food is just phantastic and the ladies like "to rumble"