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Thursday, 02/19/2009 2:33:47 PM

Thursday, February 19, 2009 2:33:47 PM

Post# of 704019
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.
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