Transaction Tax Bill has now been introduced

Quote from Bullet:

Let Wall Street Pay for Wall Street's Bailout Act of 2009 (Introduced in House)

HR 1068 IH

To amend the Internal Revenue Code of 1986 to impose a tax on certain securities transactions to the extent required to recoup the net cost of the Troubled Asset Relief Program.


IN THE HOUSE OF REPRESENTATIVES

February 13, 2009
Mr. DEFAZIO (for himself, Mr. WELCH, Ms. SUTTON, Mr. CAPUANO, Mr. WU, Mr. STARK, Ms. DELAURO, and Ms. EDWARDS of Maryland) introduced the following bill; which was referred to the Committee on Ways and Means



http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1068.IH:


Welcome to America...or at least what's left of it! How exactly did short term traders take down the financial system...oh yeah, from scalping GS and AAPL
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I think this makes a lot of sense, except for 3 things

1) I didnt cause the problem

2) I dont benefit from the bailout and was against it

3) I have to pay the tax, and will lose yet another occupation (tech was the last one, thanks for the H-1bs congress)

In my opinion, it is the CME we need to get on our side

they didnt get any TARP money, and they will be GONE if this passes

I could live with this if CME were exempt

is there anyone influential in washington, who came from chicago?

besides the unfairness and inaccuracy of this 'plan' is the self defeating nature of it. THe whole point of TARP, is to make 'unpriceable' 'illiquid' (fancy description for worthless) 'assets' more liquid.

Yet, they're going to put a transction tax on the round trip, which will only make the TARP supposed 'asset'even more illiquid, because your breakeven point just went a lot further against you, before you even started

stupid, stupid fucking people

like prosecuting the teller to teach the bank robbers a lesson
 
I think when discussing this it needs to be pointed out how much it would hurt the "active investor", not just the "trader". If you just turn your portfolio over a couple/few times a year, this would end up costing you over 10% of your capital over a ten year period. Now think how much it would cost a young investor till the time he retires.

And this is on top of capital gains taxes!

Another example of punishing responsible people doing the right thing, while rewarding the companies and individuals who caused this mess.
 
Quote from bears21:

thank you i have been trying to tell the people on this board that it would not effect them trading in the least bit. exemptions exemptions exemptions. little guys big and small. now if you want to trade retail through ib those are the accounts that will be effected. so get into a group llc prop etc that is an exchange member and enjoy not paying this tax ala the traders over in the uk
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Bears21 posted this on previous thread. He is exactly right. It will just change the way we trade. Broker dealers will be exempted from this tax, how else could they make markets and provide liquidity. As a matter of fact, liquidity as a stand alone argument is probably reason enough this will never pass. After DOJ study of NASADQ in mid-nineties wide spreads were first attacked. This argument eventually led to decimalization in all equities. Spreads would widen dramatically because of cost of doing business and lack of liquidity. Would paying for the bill at the expense of investors, who were victims in crisis, and not the brokers/banks that were at the root of the reason for bailout, ever pass?
 
Quote from Klamath:

I think when discussing this it needs to be pointed out how much it would hurt the "active investor", not just the "trader". If you just turn your portfolio over a couple/few times a year, this would end up costing you over 10% of your capital over a ten year period. Now think how much it would cost a young investor till the time he retires.

And this is on top of capital gains taxes!

Another example of punishing responsible people doing the right thing, while rewarding the companies and individuals who caused this mess.
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Can you please explain how did you come up with the number of 10% of capital over a ten year period?
 
Quote from lindq:

You don't need to take an hour.

Take 3 minutes.

Go to: http://waysandmeans.house.gov

Click on "Contact", then write as a small investor/trader and let them know how it will impact you.
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Please call his offices:

Washington, DC Office
2134 Rayburn H.O.B.
Washington DC, 20515
Phone: (202) 225-6416


Eugene Office
405 East 8th Ave. #2030
Eugene, OR 97401
Phone: (541) 465-6732

Coos Bay Office
125 Central, Suite 350
Coos Bay, OR 97420
Phone: (541) 269-2609


Roseburg Office
612 S.E Jackson Street, Room 9
Roseburg, OR 97470
Phone: (541) 440-3523
 
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