Monday, April 17th, 2017

H. R. 1068 Block The trader tax bill


On Friday the 13th, 2009, US congressman Peter DeFazio introduced H.R. 1068 “Let Wall Street Pay for Wall Street’s Bailout Act of 2009″ which seeks to impose a 0.25% transaction tax on the sale and purchase of financial instruments such as stocks, options and futures in order to recoup bailout costs.

This is a devastating proposal that will shut down mom and pop retail traders and make the markets illiquid and defunct. The increased costs will be monumental to your daily trading and making a living as short term traders.

Its an amendment to IRS 1986 act which levies tax not on profits but entire amounts of transactions. What costs now to trade few dollars lest say 100 shares of $AAPL for $4.95 at a discount brokerage will now cost $50 with the tax!  This will end day trading careers and bring demise to swing and option trading incomes. With the transaction costs so high, it will be highly likely getting in and out of markets without losing money would not be possible. What about trading stocks in higher price range say  Google ? A round trip 100 shares buy and sell order will costs nearly $170 to you and me!

The repercussions of this bill are enormous. Market makers and scalpers wouldn’t stay in business, thereby drying up liquidity and efficiency of markets. That would create job losses in the industry and thereby crushing the markets further into doldrums.

Second, a transfer tax such as this will lower capital gains dollar for dollar, making the notion that anyone who invests their money will be on the hook for the excesses of Wall Street all that more poignant.

Peter DeFazio of Oregon has a history of introducing similar bills. Out of the 181 bills he as introduced 161 did not make out of the committee and only 10 have be enacted.  So the odds of DeFazio making out this time still are slim yet very possible. He has a history of putting some kind of tax on securities transactions and has unsuccessfully tried the same since 1991. But the danger lies that this bill gets wrapped into some another legislation, and gets a green light, and passes through Congress.

There is a petition going on, and I strongly urge you to sign it and tell Congress to Block the HR 1608 Bill immediately. You actions should not be limited to signing the petitions. Please try to use any available means by calling your Congressman and US representatives or sending them emails and asking them to take on your behalf. You have the right, you have the voice, they represent you and your opinion, not the other way around.

Please take a moment, click the link below and ask Congress to Block the HR 1068  Bill now !

http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/

Comments

4 Responses to “H. R. 1068 Block The trader tax bill”
  1. Ornavarem says:

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  2. mstrswmr says:

    Even the wackiest of leftists knows this tax won’t generate anything close to what is projected ($150 billion) because the trading activity would dry up. This isn’t about Wall Street paying for anything. It’s about a religious zealot (a member of the Anticapitalism religion that dominates Congress right now) punishing people for engaging in an activity that the zealot disapproves of. My concern isn’t that he’s going to get his way and fundamentally change the financial markets, its that the little guy, the retail guy, will be subjected to a tax while the Goldmans and the Morgan Stanleys are exempted out by special provisions. What irony it would be if the retail trader, who along with everyone else was hurt by the excesses of the big institutions, got hurt by legislation ostensibly introduced to make the big institutions pay for the excesses.

    As for petitions, political action and such, a small disparate community like “frequent retail traders” has absolutely no political power in this environment. Take my congressman, for example. His voting record reflects the sensibilities of the residents of San Francisco far more than it does the people in the midwestern suburbs he “represents.” We have to hope that our proxies, Schwab, Fidelity and Scottrade, find it in their own interest to lobby hard against something like this.

  3. ELROY MCKENZIE says:

    EVERYONE NEEDS TO STOP PAYING INCOME TAX, THATS THE ONLY WAY WE ARE GOING TO GET BIG GOVERNMENT TO STOP SPENDING OUR MONEY

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