Traders Tax: H.R. 4191 (H.R. 1068) in Congress Now

I don't post in here often, but look through the forum here a lot. I just got an email an about this new traders tax bill in Congress now. From what I understand this could ruin day trading for everyone.

The email had a link to go to and sign a petition to send to U.S. Congress.

I just signed the petition and figured all the traders in here would want to as well as it is very important they don't pass this bill.

www VoteNo1068 com (this link no longer works so disabled)

edit: Link to H.R. 4191 http://www.govtrack.us/congress/billtext.xpd?bill=h111-4191

I keep saying this, but apparently it is hard to grasp. Forget the ES. Even if the tax is low on futures and we could handle it, what is the ES? A derivative of a composite of 500 stocks. There is no talk of a 'low' rate on stocks. The lowest I have seen is 0.1% each way, and the high was 0.5% each way. Most versions are well above the 0.1% each side. For 1,000 shares of AAPL, for example, at the current price and the 'low' rate of 0.1%, that's $480 round turn, win or lose on the trade. The high end amount proposed would be $2,400 per trade! This will destroy the liquidity of the S&P 500 companies. If they are all barely trading and trading illiquidly, the ES would be a basket case. Forget the ES taxes. Even if there were none on the ES, it would still be shot for us if they implement the huge taxes on its component stocks.

I spent the morning listening to the Senate hearing on the "Flash Crash" that occurred on May 6. They had the heads of all the exchanges there to testify, along with the heads of the SEC and CFTC.

One thing that became very clear to me is, they are planning a major regulatory restructuring of the markets. So anything we know today about how the markets work, put it aside, it may soon be in the history books.

For example, the head of the NYSE kept coming back to the point that the retail traders, retail market orders, were a contributing destabilizing factor in the recent crash. He said they need to ban the use of market orders and stop loss orders across all markets. He came back to this point several times in his testimony.

Trading choppiness is better than trading trending markets. You make money and nobody objects......

Hmmm, too bad I'm a trend trader. I love trend days and dislike chop. I guess I'll be out of business...

Yes, PT, I'd read about that market order thing on Zero Hedge. I know I'm very pessimistic, but I hold little hope out for the future of being a private trader the way things are looking. I hope I'm wrong.

Which category do Emini Future traders fall in.... Short sellers or Naked Short Sellers

Shiela posted the full comment elsewhere, but for those that haven't seen her thread, there is an update at Green Trader Tax:

http://www.greencompany.com/blog/index.php

Even if they pass a FTT, the money derived from it won't amount to much because there will be no volume. At this point, who knows what will happen - I can't worry about it, I write my reps and do what I can but I feel that really its out of my hands.

I agree, sheila, that it is mostly out of our hands. All we can do is write our reps, make posts, tell as many people as we can, and keep trying to be proactive, so collectively maybe we make enough of a difference if it was close. At least we don't lay down, we keep trying.

Good point Jim and I do that - but its weird - every time I write my rep the canned response I get back is like an alien read it - half the time its not even related to what I put in the letter. Its like they don't hear us. So I will keep trying, but I think its bigger than us and the best thing we can do is come to peace inside of ourselves and be ok with whatever happens.

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