HR-1068: DAY TRADER TAX!!!!
WILL COST YOU THOUSANDS!!!!!!!
Let Wall Street Pay for Wall Street's Bailout Act of 2009
Legislation proposed to tax traders under populist bill:"Let Wall Street Pay for Wall Street's Bailout Act of 2009
From the bill:
[ (5) The easiest method to raise the money from Wall Street is a securities transfer tax, a tax that has a negligible impact on the average investor.
(6) This transfer tax would be on the sale and purchase of financial instruments such as stock, options, and futures. A quarter percent (0.25 percent) tax on financial transactions could raise approximately $150 billion a year.]
Unfortunately, this bill doesn't differentiate between Wall Street firms receiving TARP money and daytraders working from home. If you were to purchase $10,000 worth of stock, then you would be taxed $25. To sell the same shares, another $25. Using this example, if you were to make two trades per day(buy and sell) it would cost you $25,000 a year($50*500). On top of brokerage commissions and cap gains/ short term gain taxes, this transfer tax would ruin daytrading. I'd advise anyone who daytrades part-time or full-time to contact their congressman.