http://www.nytimes.com/2009/01/13/opinion/13herbert.html?_r=3 http://www.elitetrader.com/vb/showthread.php?threadid=150546 The way I understand this tax is that a o.25% tax will be levied on the value of a transaction; e.g., on $10000 if the stock or option is valued at $10 and the transaction amount is 1000 shares or 10 option contracts. This is unsustainable and the tax bill will be self-destructive if you do the math. A 0.25% tax on the principal to open a position would mean 0.5% round turn, and 1% for 2 round turn trades. Most professional traders would do more than 2 trades per day and they would lose 1% of their capital (or the principal involved) per day regardless whether they make profit or not; and they will lose 100% of their capital in 100 days !!! Unless they make more than100% every 100 trading days, they will die !!! If they have to make 100% every 100 trading days (or 250% every year) just to break even, why the fcuk even to work? Might as well watch TV all day and get government unemployment benefits !!! If they make 250% every year, in a few decades, they will be the richest men on earth, but this has not happened. Can CitiBank or Goldman Sachs make 250% every year? I doubt it. But to survive this tax, they HAVE TO make 250% EVERY YEAR!!! Or am I missing something?