29 replies to this topic

[tommyt]

I heard the first traders tax go round didn't produce anything, but its been re-introduced HR 676, and BURIED (deep) IN THE HEALTH BILL. They are trying to sneak this thing through...lets get on this with the petition thing again! Someone who knows how?

HR 676

[colion]

Contact the outfit that put out the first petition (http://www.rallycong...ock-trader-tax/) and they will probably get something going. And, of course, send a note to your elected representatives (Senate and House).

[OEXCHAOS]

Sheeze. This is going to be a long fight. You shouldn't be allowed into office unless you demonstrate a grasp of economics. Of course, that could be said about a lot of jobs... Go get 'em, guys. Mark

[bln]

Don't forget to inform all the brokers too, especially the big ones, IB, E-trade, Scotttrade, etc, their business will be hurt badly by this nonsense.

[Alton]

Here are several links associated with this issue. All have been posted previously, but I'm renewing them here because I think they need to be available, a constant reminder to those who haven't taken action on the Trader Tax.

At the beginning of this thread TommyT posted the link to HR 676 which authorizes this type tax as a means of raising revenue. The first link below is to the text of the DeFazio bill (HR 1068) if you haven't read it or heard about it already. There are some good explanations about the results of this bill - what it will do to the markets and to individuals - in other threads here. The impact is astonishing. You've probably seen these posts, but if you haven't I recommend you search for them....

Library of Congress: HR 1068

Here is a brief CNBC interview with Representative DeFazio.

CNBC Interview: Rep. Peter Defazio

Posting slams against the Oregon representative will not do any good, and will possibly bring heat on the board, so view the clip, follow the links below, and spread the word to your friends.

Next are links to two petition/letter sites which offer efficient ways to contact your congressmen and senator. If you haven't participated in this process, please take the time, make the effort, and let your thoughts be known.

Rally Congress

Security Traders Association

If you've already done one of these, look at the other, as the focus is slightly different. There's no rule that says you can only write one letter to your folks in DC, so have a go at the other, and add your personal thoughts.

I've deleted a rehash of my own thoughts and opinions about this from this post, but consider this. If this bill passes and you haven't done anything.... Alton 3-5-9

Edited by Alton, 05 March 2009 - 05:05 PM.

[pdx5]

The trader's tax is certain to pass. Some one has to pay for the TRILLIONS being spent for STIMULUS and the 8000 EARMARKS. But fight on nevertheless. Better to fight and lose than never fight at all. Just remember you are fighting the president and majority in congress. Who ever said "You can't fight City Hall" was'nt kidding.

[OEXCHAOS]

then TT will become the voice of the resitance. We'll find a new home off shore and deprive them of our productive capacity. A new derivatives market will be spawned off short as well though many traders will just drop the US for other markets. And the tax will make a few hundred mil from pensioners and those who have to invest here. You know, its something horrible that any people think it's OK to FORCE people out of business through the force of government. Many of us have worked a lifetime, including a lot of long, long days and nights to become good at what we do. We make a living leaving very small foot print too. Virtually no pollution. No fuel consumption. No environmental degradation. We just make the market more efficient, take a tiny sliver, and pump most of those profits back into the economy.

[pdx5]

then TT will become the voice of the resitance. We'll find a new home off shore and deprive them of our productive capacity. A new derivatives market will be spawned off short as well though many traders will just drop the US for other markets.

And the tax will make a few hundred mil from pensioners and those who have to invest here.

You know, its something horrible that any people think it's OK to FORCE people out of business through the force of government.

Many of us have worked a lifetime, including a lot of long, long days and nights to become good at what we do. We make a living leaving very small foot print too. Virtually no pollution. No fuel consumption. No environmental degradation. We just make the market more efficient, take a tiny sliver, and pump most of those profits back into the economy.

Mark, you are absolutely correct. However for that to become reality, you need a pro-business administration who understands econ 101. Tax on any productive business is rewarding the non-productive via confiscation of money from the productive. It rewards failure and punishes success. Sadly, that is where we are at now. We are now on path to make our corporations less competitive in the world economy. We already have highest corporate tax rates amongst industrialized countries.

[Alton]

I've spent much of today trying to research the 1914 Trader Tax which "more than doubled" in 1932. There's a lot of information out there, some of which is misleading. I've revised this post accordingly. Securities Industry News (link provided by TT member, Data) has a summary of information about the transfer tax which was implemented in 1914 and doubled in 1932. They talk about some of the other issues as well and make some good points. Representative DeFazio seems to be saying that since it didn't hurt us then, it won't hurt us now. Of course there's no real measure of how much the transfer tax held us back, but it took the stock market more than 25 years (until November 1954) to recover, and we didn't really emerge from the Depression until industrial production ramped-up in World War II. By his defense of the earlier tax, it would seem this time-table and style of economic recovery are acceptable to the congressman. What is needed is for this legislation to be quashed. One new insight I've had in bringing this down to pennies is that the tax, as a proportion of the spread, is gargantuan, especially compared to prior periods. I reiterate that this tax is skewed to injure those traders with the lowest per-trade profit margin. I speak especially for traders like me, who have modest accounts and are just trying to practice our craft and improve our skills. huh.gif Many of these are the same folks who provide liquidity and a measure of stability to the marketplace every day. Alton 3/8/9 PS - We are already the "voice of the resistance"...and I use Firefox

[OEXCHAOS]

Thank you, Alton. I'm going to ask market historians here to chime in. We can edit any problems or inaccuracies. Mark