I know there is already an existing trader tax thread going on but I wanted to start a new one because it is clear to me that many have not read Defazio's H.R. 1068 set out to impose a 0.25% tax on all trades.
Here it is:
http://www.govtrack.us/congress/billtext.xpd?bill=h111-1068
Please read it and then comment.
My thoughts:
0) This is not a "traders tax". Its an investors tax. Do not let Defazio make this bill seem like it affects the "wall street trader". Investors are also affected by this bill. Do not call yourself a trader. Call yourself an investor to avoid any media backlash against public perception (i.e. Enron trader)
1) This bill was created to "take it out on Wall Street" and remarkably will include American investors hurt by the financial fallout through their underwater stocks, options, and future instruments held before the crash.
2) The creators of this bill do not understand the difference between "Wall Street" and "Main Street investor". The American investor is not Wall Street.
3) There is NO discussion of how much tax can be raised per year as well as in what time frame the law would no longer be in effect. Without these numbers, it is unjust to support this bill without full facts and data held before the American public to make a conscious decision.
4) This bill calls for elimination of the tax after all proceeds have been repaid. When will that be and shouldn't the tax take that into account? For example if it is desired to raise $700 billion, how fast do you want this money? 6 months? 1 year? 3 years? If so, give us some numbers so that WE can tell YOU what is fair in amount of trader tax.
5) This bill has potential to damage the entire financial services industry including investment advisors, brokerage firms, investment companies, heck any company involved in some way with the financial markets. It will create more unemployment and cause more expenditures for the unemployed.
6) The additional tax would all but eliminate frequent trading as it would be too costly for the typical investor. Investing is a right for all citiizens, not just for the wealthy. This bill discriminates against small investors.
For example, a typical $250,000 brokerage account turned over 4 times would incur a minimum $4,000 in taxes.
7) Watch the video below. Clearly this is an angry politician who has no clue about how damaging this idea is to this country. He makes an incredibly stupid assumption that American investors are Wall Street and that any tax will affect the very people that got screwed - Americans!
http://www.youtube.com/watch?v=qJO7hSbzc-4
8) Contact your Congressman or House of Representative. Write a letter explaining you are in investor and you want your rep to oppose this legislation.
Most importantly if this bill is to repay the American citizen then:
a) Why are American investors being asked to pay for this? A good deal of American citizens are American investors. They aren't Wall Street.
b) Wall Street institutions are repaying back the TARP money so whats the point of this bill!
Here it is:
http://www.govtrack.us/congress/billtext.xpd?bill=h111-1068
Please read it and then comment.
My thoughts:
0) This is not a "traders tax". Its an investors tax. Do not let Defazio make this bill seem like it affects the "wall street trader". Investors are also affected by this bill. Do not call yourself a trader. Call yourself an investor to avoid any media backlash against public perception (i.e. Enron trader)
1) This bill was created to "take it out on Wall Street" and remarkably will include American investors hurt by the financial fallout through their underwater stocks, options, and future instruments held before the crash.
2) The creators of this bill do not understand the difference between "Wall Street" and "Main Street investor". The American investor is not Wall Street.
3) There is NO discussion of how much tax can be raised per year as well as in what time frame the law would no longer be in effect. Without these numbers, it is unjust to support this bill without full facts and data held before the American public to make a conscious decision.
4) This bill calls for elimination of the tax after all proceeds have been repaid. When will that be and shouldn't the tax take that into account? For example if it is desired to raise $700 billion, how fast do you want this money? 6 months? 1 year? 3 years? If so, give us some numbers so that WE can tell YOU what is fair in amount of trader tax.
5) This bill has potential to damage the entire financial services industry including investment advisors, brokerage firms, investment companies, heck any company involved in some way with the financial markets. It will create more unemployment and cause more expenditures for the unemployed.
6) The additional tax would all but eliminate frequent trading as it would be too costly for the typical investor. Investing is a right for all citiizens, not just for the wealthy. This bill discriminates against small investors.
For example, a typical $250,000 brokerage account turned over 4 times would incur a minimum $4,000 in taxes.
7) Watch the video below. Clearly this is an angry politician who has no clue about how damaging this idea is to this country. He makes an incredibly stupid assumption that American investors are Wall Street and that any tax will affect the very people that got screwed - Americans!
http://www.youtube.com/watch?v=qJO7hSbzc-4
8) Contact your Congressman or House of Representative. Write a letter explaining you are in investor and you want your rep to oppose this legislation.
Most importantly if this bill is to repay the American citizen then:
a) Why are American investors being asked to pay for this? A good deal of American citizens are American investors. They aren't Wall Street.
b) Wall Street institutions are repaying back the TARP money so whats the point of this bill!
