Traders overwhelmingly back Romney.

As one who has written that "people should go die in a corner" rather than have Obamacare or Romneycare vote libertarian.

 

We're not talking about pennies. Current democratic FTT legislation would put a tax of $40-70 per round-turn on each ES contract.

 

You are talking about a few Dems (progressive caucus) who support FTT, it's not a mainstream Democratic idea at all to push for a transaction tax.

 

So who are the non-traders here huh? . . . those on the other side of the trade?
the smart money..

 

Wow I knew they were stupid but geez.

not to be adversarial, but have you got a link that describes how the tax would be calculated?

 

You're not being adversarial. You're asking an important question.

There are two financial transaction tax (FTT) bills pending in Congress: (a) Harkin-Defazio, (b) Ellison.

The Harkin-Defazio bill would place a .3% tax on all stock and bond transactions and a .03% tax on all derivative trades (futures and options). The Ellison bill would use .5% and .05%. (Details of the bills can be found by doing a Google search on "Harkin-Defazio" or "Ellison" along with "transaction tax.")

Here's the Harkin-Defazio FTT calculation assuming the ES futures contract is trading at 1400.

1) The "value" of the contract is $50 per point: $50 x 1400 = $70,000.

2) One percent of $70,000 = $700.

3) One one-hundredth of one percent (.01%) = $7.

4) Three one-hundredths of one percent (.03%) = $21 per transaction, or $42 tax per round trip.

The proposed Ellison bill (.05% tax on futures transactions) comes to about $70 tax per round trip.

Tim Harkin refers to his FTT legislation as a "tiny tax." A $42-70 tax per round trip is 10-20 times higher than what most of us pay in commissions.


===============================================


To the naive traders who think the FTT can't happen here, it's time to wake up. That's exactly where we're headed.

http://washingtonexaminer.com/repor...ama-cabinet-slot/article/2512982#.UJwE3UbCz8A

"White House Chief of Staff Jack Lew is the favorite to replace Treasury Secretary Tim Geithner, but Obama aide Pete Rouse is looking for “a Fortune 500 CEO” to work under the president who embraced Occupy Wall Street."

The number one demand made by OWS was a tax on financial transactions.

 

Great reply THANKS

 

Even if no FTT,

currently futures traders face the blended rate of a 23% tax rate(60% Long term cap gains, 40% short term).

Under new rules, it will be,

0.6* 25%+0.4*40.8%=31.32%.

A whopping 40% increase in tax.

http://waysandmeans.house.gov/news/documentsingle.aspx?DocumentID=299226

For ordinary income, when factoring in the reinstatement of these additional hidden tax rates, the top effective marginal tax rate in 2013 will be 40.8%:

39.6% (top statutory rate on ordinary income)
+ 1.2% (Pease limitation)
40.8%

For capital gains, when factoring in the reinstatement of these additional, hidden tax rates,
the top effective tax rate in 2013 will be 25.0%:

20.0% (top statutory rate on long-term capital gains)
3.8 percent (ObamaCare surtax on net investment income)
+ 1.2% (Pease limitation)
25.0%

 

Under these extraordinarily difficult circumstances my suggestion, to borrow yours from other arguments, would be to get a real job.

 

ah the soft bigotry of a non-trader.