It has come to my attention that a new tax on trading is being proposed….
”U.S. Congressman Peter DeFazio, introduced H.R. 1068: “Let Wall Street Pay for Wall Street’s Bailout Act of 2009”, which aims to impose a 0.25% transaction tax on the “sale and purchase of financial instruments such as stock, options, and futures.”
This tax is on the TRANSACTION AMOUNT, regardless of profit or loss.
So let’s say you day traded AAPL. You are in an out a few times during the day, with average size of 500 shares. Three round trips, and 3000 total shares, for a transaction amount of roughly $270,000. You would then pay $675.00 in tax, no matter if you MADE OR LOST MONEY.
Suffice to say this tax would basically kill active traders, kill liquidity in the market, and basically, kill the market. It is hard to believe that any idea this crazy could get any traction, but why take the chance.
Please sign this online petition:
http://www.rallycongress.com/no2tradertax/1536/
Please contact your local senators and voice your disapproval:
http://www.senate.gov/general/contact_information/senators_cfm.cfm
Please contact your local Representatives and speak your mind:
