Registered: Oct 2007
01-13-09 06:05 PM
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.
Wow, this better not be going trough, it would be absolutely devastating.