Sunday, February 22, 2009

"Trader Tax" Would Kill Stock Traders

"Out of opposition, a new birth."

-Carl G. Jung (1875-1961). Psychology of the Transference

Meanwhile, check out this article to understand why a new birth may be our only option. The old patient is cold. (h/t Jawbreaker)

IMPORTANT: The so called "Trader Tax" would be the end of proprietary trading as we now know it. It would place at 0.25% transaction tax on "the sale and purchase of financial instruments" including stocks. It is in a bill, H.R 1068 which is currently being debated for passage. If you are a proprietary trader, you need to write your congressperson to voice your opposition today.

Here is the full text of the bill.

4 comments:

Charts and Coffee said...

Sunday Night Coffee - Analysis of the Trading Week Ahead - http://chartsandcoffee.blogspot.com/2009/02/sunday-night-coffee-22209.html

Anonymous said...

One of the new tax programes being introduced by Obama. Put traders out of business? "Yes we can"

Dinosaur Trader said...

I can understand hating on Obama if this goes through... just don't forget who got us to this point.

-DT

MikeH said...

The bill is exactly the response you'd expect from "Joe the Average Schmuck". The same one who will scream "$4 gas! Tax those evil oil companies!" as the fill up an 8 passenger SUV for their 40 mile commute. Sadly, I expect a little more rationality from our government representatives and economists. They look at a symptom of problem and say "let's impose more costs"? Hint - it didn't work in '29 when money supply was tightened and protective tariffs put in place.
If anything, at a tax to any house sold because of foreclosure. That damage is already done, and might alter the behavior of lenders.