If the "Trading Tax" is Passed

Discussion in 'Trading' started by illinimatt81, Jan 13, 2009.

  1. What will you do? How will you sustain your income?

    What impact could this have to brokerages/exchanges? Could we see them locate overseas to avoid the taxes? Would volume then increase on overseas exchanges?

    What are some of our options? I know it is way premature to say this will happen for sure, however it never hurts to be prepared. Thoughtful discussion is both prudent and wise at this juncture.

    Politicians debate endlessly on many bad ideas that never get through committee or become close to being law. We shouldn't panic but at the same time have or plan ready to go if/when the time comes.
  2. Write you congressman and tell him you don’t want this put into law, and send him a big check.

    That’s how you get things done trust me.

    Tune into C-SPAN2 right now Dem talking about speculators
  3. Bah. All we need is another bull market to put a stop to all this whining. Long-only investors (i.e. "suckers", "sheeple") get scared when their NAV goes down and they turn to the gubment for help. During a bull market everyone and their grandmother has dreams of riches.
  4. Let's hope so. If people hate speculators so much we can go right ahead and take away sub $40 oil!
  5. clacy


    There is no way of fully answering that question, until the details of such a plan would become more available.

    Would it affect futures? Would it affect options?

    Would it affect foreign stocks, futures, etc.

    Could you trade foreign trading vehicles through a domestic broker?

    Forex? Its seems like they couldn't place any sort of tax on currency exchange, but then again the Dems have never met a tax they didn't like.

    What kind of exemptions would be made?

    It's too tough to answer without fully knowing how it would look.
  6. Valid points and a good argument. For the sake of discussion lets assume every product would be taxed (regardless of how we determine its nominal value) and that all domestic brokers would be impacted without exceptions. Worst case scenario.
  7. what is this tax that you are referring to?
  8. rwk


  9. clacy


    Given that "worst case" scenario, there would be very few options available, in my opinion. Buy and hold would be the only way to make a positive return for the vast majority of traders

    I guess you'd just have to turn into an investor with the goal of beating the market.
  10. You can trade the european markets, but you will have to wake up at 3am in the morning though. Alternatively trade the after market in european stock futures which normally tracks the US futures closely.
    #10     Jan 13, 2009