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

Originally posted by pt_emini

Jim:

I think you are assuming the $100 K applies to each transaction. But I think the wording can be interpreted to mean the first $100K of transactions each calendar year...

"The tax would be applied to stock transactions (at 0.25 percent), futures, swaps, credit default swaps and options. In an effort to make sure it does not affect pension funds or average investors, it would be refunded for the first $100,000 of transactions annually, as well as for tax-favored retirement accounts, education savings accounts and health savings accounts."


I also note the word "refunded" in there, which means to me, the tax would be taken out up front for ALL transactions at the time they occur, then some of the tax might be "refunded" back to you on your Form-1040 at the end of the year. Of course that initial refund can be adjusted (reduced or dropped entirely) in future years once the tax is in place.

PT, yes, I think you are right. And $100K in yearly transactions, that's nothing. How will that not affect an average investor? Or especially a pension fund? If they put this into place the world as we know it will be gone. Seriously.

Originally posted by CharterJoe

George Monbiot argues in favour of a Tobin Tax, in his 2006 book Heat: How to Stop the Planet Burning.[14]
In November 2009, the British Prime Minister Gordon Brown raised the idea of a tax on financial transactions, but did not go into specific details. The US Treasury Secretary Timothy Geithner quicky told the press that any such tax would have to be world-wide if it was to be effective, and he foresaw no way that that would ever happen.


As I have stated before my brokers have said the same thing. There is no way they can impose tobin tax on FX markets It would have to be a global effort, as they cannot tas foreign traders for using american dollars.

Joe, I agree that they can't tax worldwide on FX, but they sure as heck can tax every American citizen for any transaction they do of any kind as a citizen, with a U.S. account, or with a foreign account. I can't think of any scenario where we as U.S. citizens could get around that. The tax would be based on country of residency. Even if you had a foreign account, you'd still owe the tax, as you reside in the U.S. They could and would easily make that the rules. If you say you simply won't pay it, and they have no way to enforce that, great, but then you get into tax evasion, something I won't do under any circumstances. For me, that's not a business model. I know what you are trying to say, Joe, but I just don't think it is going to skip FX. I hope you are right, I love currencies, and then I won't be filling out apps at the local convenience store with the rest of the traders. But I just don't see it... They all know everyone would just move to FX, and they just won't let that happen.

This is still the best resource I have found to follow along on this:

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

There are some updates from the last two days.

Jim, Our treasury secretary would never ever lie to us....LOL.

You and PT, have much more faith in our gov than I do. They can't restructure themselves out of a torn, wet paper bag. Remember FEMA trailers? Or TARP for that matter, Or Bush and Paulson who started that whole panic....I can still remember his speech (paraphrased) " If we don't get this bailout money you Americans want even be able to buy a dryer" they can't even keep up with there vans and laptops. They are to DUMB to unite any sort taxation of american traders let alone a world wide collaboration to tax traders .

All this is so confusing. Can someone please explain in simple terms as to when this tax is expected to be levied? I would like to move my account from to another country. Any suggestion where I should go and which broker to contact. For all I care I will trade the futures of "BROOMS" as long as it gives a decent return on a low margin tax free.

"Congressman Peter DeFazio says his new bill will also chase down tax evaders who trade in foreign markets that don’t have a transaction tax."

Can anybody suggest a canadian brokerage thro' whom I can trade Emini NQ.

Please Vist:
http://dandelionsalad.wordpress.com/2009/11/11/a-little-populist-retribution-making-wall-street-pay-its-fair-share-by-dr-ellen-brown/

A Little Populist Retribution: Making Wall Street Pay Its Fair Share by Dr. Ellen Brown

"Gambling is an addiction, and the addicted need help. A tax on these microsecond trades could sober up Wall Street addicts and return them to productive labor, and transform Wall Street from an out-of-control casino back into a place where investors pledge their capital for the development of useful products."

Originally posted by ak1

Can anybody suggest a canadian brokerage thro' whom I can trade Emini NQ.

Please start a new topic with this question. This is the wrong thread for this topic.

Originally posted by pt_emini

"Congressman Peter DeFazio says his new bill will also chase down tax evaders who trade in foreign markets that don’t have a transaction tax."

I have to tell you, PT and everyone else, I think they plan to pass this such that trading is done, no escape, no options. I don't want to sound too negative, my point is that we need to be as proactive now as we can be, because once it is passed, we are all unemployed.

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