Here is the e-mail address for the president and Vice president! President George W. Bush: president@whitehouse.gov Vice President Richard Cheney: vice.president@whitehouse.gov
for the heads up on this. My comments have been sent to my representatives opposing any change to Section 1256 contract tax law. Bob
You can bet your bottom dollar that the top sponsors of this repeal are the NYSE, AMEX and NASDAQ. Where have equities traders been taking their business? To the futures markets. How do you hurt your competition? (the CME) You make their products less desireable. Bastards. P L J
I'll get a real job before I'll ever send another trade to the NYSE or AMEX. The specialist system needs a face lift worse than joan rivers.
Ok, someone check my math here. Let's say I am a successful index futures trader right now and I make $100k a year...and once all is said and done, my effective tax rate runs around 25%, using trader tax status and the section 1256 treatment of index futures. They pass the Bush "tax cut" and my effective tax rate would jump up to around 35% (38% minus some deductions). But if I incorporated and paid myself a dividend out of the corporation, the corporation would show a wash, my income would be in dividends, and effectively, neither I or the corporation would pay taxes? Edit: I don't think dividends are expensed for corporations, so this idea wouldn't work...oh well. Edit-Edit: This would still reduce the overall rate from 38% to whatever the corporate rate on your profit would be.
That's correct. Uncle Sam taxes the corporation on dividends then just can't stop from taxing that again when the stockholder gets it. Eventually, our tax & spend mobocracy will have to start taxing wealth in addition to income, so soon it will be taxed again if you deposit it in your bank, and taxed every year until it is gone.
This is truly brutal. I sent a couple of e-mails to my representatives and sure hope that it doesn't become law. What makes it so startling is that I was not aware before today that a scheme was even in the works that would revoke this tax treatment.
I'm no fan of politicians, but one of the few ways to easily be proactive is to vote and, in this case, let them know we are paying attention. Sent my letters today (wished I'd seen this earlier!!) <blockquote>Re: http://thomas.loc.gov/cgi-bin/query/C?r108:./temp/~r1084yoZYz Senate Bill 1054: Repeal the 60/40 tax treatment of section 1256 contracts to be effective in 2004, specifically, strikes paragraph 3. SA 680 passed on May 15, 2003 without debate in the Senate as part of a package of revenue raisers for the President's Jobs and Growth Tax Relief Reconciliation Act of 2003. This provision was not part of the House version of the bill. Dear Senator Murray, As a member of your constituency and a professional independent futures trader, I would like to tell you I am firmly against the proposed repeal of Section 1256 of the tax code, referenced above. My understanding is that this bill is intended to reduce income tax rates, to encourage investments and to improve our financial markets. Deletion of the 1256 code does just the opposite, reducing liquidity at a time when stimulus is most needed. Furthermore, this measure would immediately increase my tax liability by over 10%. I am not a "Big Player", just an average American woman making an ordinary living in very trying times. This code has been on the books for over 20 years and affects not only individuals but large and small businesses alike. I strongly urge you to vote against S.1054, the repeal of Section 1256 paragraph 3. Best regards, amg, etc etc</blockquote>
" Well Norton, this is a revoltin' developement", Ralph Cramden to Ed norton , The Honeymooners. Agree with Vanilla and peg leg, helping drive revenue back to equities, i.e. the sec vs. the cftc. The mkts are apparently rising to new heights as a political tool.