Strategies to counter the transaction tax

Discussion in 'Trading' started by TradeCharts, Nov 25, 2009.

  1. What will be our options if they indeed pass "Let Wall Street Pay for the Restoration of Main Street Act of 2009."? As of now, we will pay about $300 for one round trip of 100 share GOOG. If we make 10 round turns per day, we need to pay $3000 just for the tax in addition to commission fees. The options I can think of are.

    (1) We all head to main street and compete for hourly jobs.
    (2) We move to overseas and trade overseas stocks.
    (3) We buy and hold for bigger moves (ignore money management).
    (4) We all trade from our IRA accounts.

    What are your thoughts?
  2. (5) Make campaign contributions to your congressmen and GS to quash any potential legislation. :cool:
  3. zdreg


    none of your ideas are feasible for a trader.

    u wait to see which exemptions arise.then you put yourself into one of them.
  4. The ONLY strategy is to stop it.
  5. sprstpd


    Curl up into a ball and cry?
  6. jjj1000


    I don't think it is going to pass at all. But if does, I think the only way is to fit yourself in an exemption somehow, otherwise it is game over, really.
  7. It has to not only be stopped, but it has to be removed from being even the remotest of fantasies. The only way to do that is to contact your representative, vote against anyone who doesn't issue a clear and unequivocal denouncement of this type of tax, and tell everyone you know about it, explaining why it's bad for America, not just traders and Wall St.
  8. So how does this tax work for

    1.) options
    2.) derivatives
    3.) other trading vehicles that are not invented yet.

    One thing that we seem to ignore is the adaptability the financial market has.

    Someone somewhere will come up with something that can work around this

    NO ?
  9. zdreg


    the answer is spite of what some posters say about the transaction tax inthe uk. there is no retail trading comparabe to the US
  10. remember, an INTERNATIONAL TAX is being proposed.......
    #10     Nov 25, 2009