Say this bill gets passed half way through the year. Would we still have to pay transaction taxes on the first part of the year even though the bill has not yet been passed?
Well the bill said EXCLUSSIVE jursidiction of the cftc, and I know FX is somewhat under jurisdiction but not sure if it is exclusive or not.
It's likely to be passed. There is a disdain for risk-taking in the current environment. It will push a tremendous amount of business into European OTC markets. Can you imagine the boon to fund co's like Fido, Vanguard and State Street?
Its funny in all this CME has announced this week I think they are rolling out e-micro forex contracts that are worth one tenth of there full size, so basically cme is going to offer micro accounts, even with this all going on the are rolling things out which tells me what I need to know. We dont need scare tatics, jsut write ur congressmen or women and thats what we can do. But right now the only one bringin this up is Defazio , he has tried and been shot down 2 previous times in the past 6 months. I am sure it will be the same, he didnt vote for the stimulus this past friday, that was the day he introduced his tranny tax bill. Just like he didnt vote for the Tarp in Sept he pushed his tranny bill. So I think this legislation was put in place of the Stimulus bill last week, and it failed
Here is the financial disclosure of a co-sponsor, Rep Welch from 2006. Take a look at this transactions. He is a trader! Look at the transactions on some of the stocks, such as LSI and RAD. In and out several times with nice gains. Rep. Welch does not appear to be buy and hold! http://www.washingtonpost.com/wp-srv/politics/congress/fin_dis/2006/w000800.pdf Now why the heck would he co-sponsor this bill???
Another co-sponsor, Rep Betty Sutton of Ohio--- http://www.washingtonpost.com/wp-srv/politics/congress/fin_dis/2007/s001174.pdf Similar to DeFazio---Holds mostly mutual funds and no stock trades in 2007.
http://www.washingtonpost.com/wp-srv/politics/congress/fin_dis/2007/c001037.pdf Easy for Rep Capuano to co-sponsor this. He has a lot of rental income and mutual funds (mostly IRA's) with no transactions in stocks etc... Only transaction was from rental income.