The problem is the idea is floating around. They could always enact it next week or next month or next year. We have to tell our brokers about the story so they can shoot the idea down. They need to tell dc just how many common people have brokerage accounts now.
This thing may have some legs............. http://www.marketwatch.com/news/sto...0F48B2-F02F-4D46-BF0F-A3B59D9ED433}&dist=hppr
As stated elsewhere, the idea has been raised by a group of politicians, so there is precedent. Assume it doesn't pass this time. The way politics works is to bring it up for a reaction, then pass it in the middle of the night when half of Congress is out. Have you forgotten that political expediency is about determination and not logic or reason?
having lived through H-1b visa in tech, I can tell you this thing gives me chills what most Americans really, really dont understand, is that the government can single you out, and put you out of business - any time they feel like it. Doesnt matter what had come before or why. And they dont have to make your occupation illegal, all they have to do is put up so many obsticals that it's not worth the risk/reward and everyone will parrot the government party line after you've been screwed - People who were not doing as well as you will enjoy seeing you cut down to size. Those who were doing better than you wont want to believe it could happen to them
Ok, let's have a discussion of options for traders, should this pass............................ Trading foreign instruments? Would that have to be through a foreign broker? Would forex be effected?
Stock traders who don't have trader tax status have no 60-40 and yet have the same 3K carryover limit. This is one of the reasons I trade futures and not stocks. Few futures traders are long term holders. My point here is that I expect the 60/40 to be axed. Better that than have some transaction (actually a "sin" tax--to punish us horrible, horrible people who do not practice the buy and hold dogmatism and therefore caused the financial companies to collapse!) tax placed on us traders.
I wrote MY Congressman in protest, and also implored him to tell Chris Cox to lift the ban on shorting. My analogy was "A car with no brakes can only crash". No short=no brakes. I trade futures, but no shorts for stocks affects me too. We're all affected by the "decisions" these people make, every day.