Better sell those trading rights quickly:eek: (b) Section 1256 contract defined For purposes of this section, the term âsection 1256 contractâ meansâ (1) any regulated futures contract, (2) any foreign currency contract, (3) any nonequity option, (4) any dealer equity option, and (5) any dealer securities futures contract.
If the tax structure stays the same for non-members this will kill CME/CBOT/CBOE membership. Look for seat prices to drop sharply. The only hope would be for the exchanges to unionize under UAW.
I will be shocked if this change doesn't apply to everyone trading 1256 contracts. If it doesn't, I think it is their intention that it does and will modify the proposal accordingly. Hope I'm wrong though.
How can it not apply to everyone who files 60/40? If it didn't everyone would become a non dealer. It's quite vague. Obama is poking holes in a sinking ship. Are all the dealers just suppose to go along with this and just be happy that their tax rate is doubled? If anything this will decrease tax revenue. Really not much incentive to make a buck in this country. So much for the O man looking out for his Chicago connections. The CME will have no choice but to fight this til their death..
Looks like the tax and spend crew is really out to get everything out of the trading world to pay for the problems of the world. Remember this would be on top of Oregon Representative DeFozzie Bear and his cast of muppets who are gunning for us with a 1/4% transaction tax. Hell, I maybe laying myself off. I'll need to form a business entity and pay some unemployment taxes so I can suck off the system when I lay myself off. Maybe they will increase benefits to 5 years for "displaced" traders. God forbid a government employee be laid off to save money or perhaps they could run a "lean" manufacturing study through each department of Governement and clean house of all the wasted breath. Start with Congress of course. I would love to see these clowns crying as their offices were wiped out of fat.
If you are addressing me, you are mistaken if you think I'm a believer in either major party. They are both screwed! We've become a bought and paid for governement. The highest bidder gets the laws the way they want. In the past I would have said I was Republican, but they are no less corrupt or less big governmenet than the Democrats. Governement is not the answer to our problems, never has been never will be due to the nature of those in power to want more and use whatever means to maintain and grow that power.