I haven't read any of these posts yet but just to nip this in the bud #1 futures contracts are inherently short term because they do after all expire. #2 if anything they should want to attract speculators to the futures markets and away from their precious equity markets.
Just returned home from evening out in NYC. We published my blog tonight. I defend traders and counter Sorkin's NYT article with my contribution. Are lower 60/40 tax rates on futures in jeopardy? - GreenTrader Weblog http://www.greencompany.com/blog/index.php?postid=116
60/40 is clearly special pleading by futures traders, there is no justification for favouring futures over securities profits. To avoid unfairly taxing quarterly rollover, have a provision for carrying forward gains as unrealised capital gains if rolled in the same contract to a future month. Simplest is a flat tax on all realised economic gains - income, dividends, capital gains, 'dealing' income, wages etc. There is no reason why one form of economic gain should be taxed more or less than any other. You can't argue for a fairer political and tax system, if you try special pleading for your own interests when they come under the magnifying glass. That makes you no better than unions, big business corporate welfare, lobbyists, and horse-trading pork barrel politicians.
I prefer a plan very similar to the fairtax.org plan. There's no capital gains tax. There's nothing to "file". Therefore, April 15th is just another lovely spring day.
That is precisely correct. That is why the Fair Tax or Flat Tax (with inbuilt protections to cap the initiak "Flat Rate') is the solution. Sadly the politicians do not want this as they need to continue to use the tax code as an instrument of political power..
"Fair" would be no capital gains tax, period. Maybe semantics, but I prefer to say securities traders are disadvantaged instead of saying futures traders are taking advantage of an "unfair" taxation scheme. I think it's in all our interests not to move toward more onerous taxation even if one group is slightly privileged on a relative basis. It's a stepping stone to much greater evils. Push for a blended rate for everyone instead of harboring animosity toward the superior structure.
If they were to repeal 60/40, then futures traders would have to document the holding period for every trade? Sched D for all futures trades? O H M Y G O D :eek:
Here's my Forbes blog version of this story. "Hey Mr. President, Traders Need Tax Breaks Too" http://blogs.forbes.com/greatspeculations/2011/07/13/hey-mr-president-traders-need-tax-breaks-too/