FORUMS BROKERS SOFTWARE
Home
 
    Forums > Trading for a Living > Taxes and Accounting > 1/4% Tax on all stock trades pushed in NY Times today

Old Jan 13th, 2009, 11:45 AM   #55
FightTheFuture
 
 
Join Date: Jun 2006
Location: USA
Posts: 1,751
Quote:
Quote from themarket:

People, people....calm down a minute. Did anyone actually read the article? The article called for a .25% tax. POINT 25 %. That's NOT 25 % . Its 1/4 of 1%. I hate taxes as much as the next person, but its hardly the end of the world.

Readjust your portfolio at the end of each quarter and you are paying 2% per year. Better to put your money in a CD.
    Quote
Old Jan 13th, 2009, 11:49 AM   #56
DmanX
 
 
Join Date: Dec 2008
Posts: 163
Quote:
Quote from themarket:

I'm glad you get it...maybe I don't. If I'm in error please let me know. The way I trade, if I make $500.00 on a YM scalp my tax would be $1.25. That's not a big deal. The article didn't specify where the tax is applied. Is it to profit? To the total VALUE of the underlying? Do you know?
It wouldn't be taxing profit. They already do that and call it an income tax.

Allegedly, they would tax some value of the transaction - like a sales tax. Problem is, futures contracts have no intrinsic value. They have notational value.

There is no buy and hold strategy with futures as they are wasting "assets."

So, let's say they decided on the notational value upon which to base the tax. Take the E-mini S&P 500...

It's notational value is $50 x the index price. So, if the index were at 1000.00, the notational value would be $50,000.

Tax on that, per side, would be $50,000 x .0025 = $125. Or $250 round turn.
    Quote
Old Jan 13th, 2009, 11:52 AM   #57
themarket
 
 
Join Date: Oct 2005
Posts: 117
Quote:
Quote from DmanX:

It wouldn't be taxing profit. They already do that and call it an income tax.

Allegedly, they would tax some value of the transaction - like a sales tax. Problem is, futures contracts have no intrinsic value. They have notational value.

There is no buy and hold strategy with futures as they are wasting "assets."

So, let's say they decided on the notational value upon which to base the tax. Take the E-mini S&P 500...

It's notational value is $50 x the index price. So, if the index were at 1000.00, the notational value would be $50,000.

Tax on that, per side, would be $50,000 x .0025 = $125. Or $250 round turn.
Thanks
    Quote
Old Jan 13th, 2009, 11:53 AM   #58
TraDaToR
 
 
Join Date: Dec 2006
Location: Lausanne, Switzerland
Posts: 4,114
Just posted in the NY times columns, do it, guys.

This is scary.
    Quote
Old Jan 13th, 2009, 12:07 PM   #59
seasideheights
 
 
Join Date: Aug 2004
Posts: 985
http://www.prospect.org/csnc/blogs/t...raise_this_tax
    Quote
Old Jan 13th, 2009, 12:09 PM   #60
seasideheights
 
 
Join Date: Aug 2004
Posts: 985
"Let's be hopeful that some real thought and study is done before this idea takes root in Congress. Given the current environment, it won't take much for politicians to tax trading out of existence. "



http://www.thestreet.com/story/10457...cm_ven=GOOGLEN
    Quote
 
Reply
Thread Tools

Forum Jump



   Conduct Rules   Privacy Policy   Sitemap Copyright © 2014, Elite Trader. All rights reserved.   

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures
Futures Trading & Clearing
AMP Global Clearing
Futures and FX Trading
Collective2
Automated Trading Services
CTS
Futures Trading Software
dom993trading.com
NinjaTrader Consulting
eSignal
Trading Software Provider
FXCM
Forex Trading Services
Global Futures
Futures, Options & FX Trading
Interactive Brokers
Pro Gateway to World Markets
JC Trading Group
Direct Access Trading
MB Trading
Direct Access Trading
NinjaTrader
Trading Software Provider
optionshouse
Option Trading & Education
Rithmic
Futures Trade Execution Platform
SpeedTrader
Direct Access Trading
SpreadProfessor
Spread Trading Instruction
thenut-trader.com
FX, Gold, & Stock Signals
TradersStudio
System Building & Backtesting
Tradier
Equity and Options Trading
Trading Technologies
Trading Software Provider