Relax guys.. Most of yall are creating a future that hasn't happened yet.. This bill is not likely to pass.. If you understand how the markets work then most of yall wouldn't freak out.. The financial market need suckers in order to survive so they wouldn't mess that up by wiping out most people.. The markets are run like the casinos.. If the casino didn't have suckers they wouldn't make much profit.. The financial market is the largest business in the world.. Trillions of dollars are in the markets everyday now why would they mess that up..? Just sit back and relax and keep trading..
There is another dynamic that has come into view of late that, as I understand it, makes it tougher and tougher to see this bill passing: it is now beginning to be referred to as "the global transaction tax" because the US doesn't want to be the only major financial system to do it. This logic should be clear: if Tokyo, London, Singapore and euro bourses don't go along, it will drive transaction volume abroad, which means the rev estimates will have to be revised way down. In my opinion, there is little or no way to get every major system on board and on the same page in a unified cause that will be painful to political funding. It runs against the fundamental grain of how political action realistically unfolds. It is true that French and German liberal legislators have begun to sound support, but that's still a long long way from enough. (Still, of course, do whatever you can to apply tactful, respectful pressure and public relations online and in direct communication with your reps.)
The more I think about this, the more confidence I have that it won't gain too much support. The Dems are having a hell of a time passing the things that they REALLY care about like health care reform and cap & tax. Next year (2010 election) is setting up as a bloodbath for Dems, so anything that doesn't get passed this year, will likely be put on the back burner until after the 2010 elections, as conservative democrats will never vote for tax increases in an election year. The Republicans would have a field day with this and could easily brand this an "investor tax". They could also get back much of their support that they lost from Wall St that has gone to the Dems recently, which means money is up for grabs for their election funds. Throw in the fact that NYC and Chicago would get nasty if this started to pick up steam. If anything did actually pass, it would end up being 1/10th of the cost that is being talked about, IMO, which would still suck but not cause as much pain as this would.
At the end of the day, our beloved leaders will probably settle for something more akin to the Pattern Day Trading rules, circa post-Internet-in-ure-face-bubble. Since the government is not unknown for being the lackey for Wall Street, the politicians will instead pass a bill that will most likely target small fries making their trading lives even more miserable. Think about the PDT rule for a moment. Was it those undernourished traders with account size less than $25,000 that bid up the Nasdaq stocks which led to the spectacular burst in 2000? Yet these politicians come up with the most silly regulations that is completely irrelevant to solving the issues of the day. Likewise, what's the Trader Tax got to do with the events that led to the creation of TARP that essentially bailed out the morons that created the mess? Why are the politicians helping them while trying to hurt the ones who not only had no ties to the mess but are indirectly paying for its recovery through taxes?
You may have stumbled on a great alternative for someone to suggest to Pelosi, DeFazio, et al. If the trader tax is to discourage speculative activity (i.e. "gambling"), why don't they tax the hell out of casino gambling and lottery tickets??? - - the amounts PLAYED, not just the winnings. Who cares that winnings are already taxed ... capital gains tax isn't stopping them from trying for this FTT.
You disgust me, because apparently you can't fucking read. I'm opposed AND I already signed a petition sent to my representatives. When YOU get ready to storm congress weapons in hand, let me know won't you?
That bill died. The new proposal is H.R. 4191. Same thing, but you should be following that number rather than H.R. 1068.