Block The Trader Tax Bill HR 1068

Posted By Tate Dwinnell |  Subscribe in a reader | Comment 6

You may have heard that US congressman Peter DeFazio introduced H.R. 1068 “Let Wall Street Pay for Wall Street’s Bailout Act of 2009” which seeks to impose a .25% transaction tax on the sale and purchase of financial instruments such as stocks, options and futures in order to recoup bailout costs. 

This bill would essentially halt most shorter term trading, greatly decreasing market liquidity not to mention putting many out of business.  This bill would be an absolute disaster.. For example, on a roundtrip trade of 100 shares of Google you’d be hit with a $170 tax bill!  You better believe these higher costs will be passed through in mutual funds as well.

This page makes it easy to sign a petition and send an email to your congressman/congresswoman urging them to vote no on this.

http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/

Here’s a link to contact Peter Defazio directly

Track the progress of this bill here

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Comments on Block The Trader Tax Bill HR 1068 »

February 28, 2009

brian wronko @ 10:01 am

Vote no this is crazy.

March 8, 2009

Jim @ 10:01 am

Hello Tate,

I have two questions regarding the proposed “Trader-Tax” HR 1068, which I cannot seem to find answers to.

My questions specifically pertain to how this proposed tax might apply to an individual who trades open-ended mutual funds:

1. “Would an individual who daily trades open-ended mutual funds (such as Rydex, Profunds, or Direxion — shares priced at 4pm daily) be subjected to this proposed tax? And if so, what minimum holding period would be required to avoid this proposed tax.”

2. “Would trading open-ended mutual funds in a tax deferred account (IRA, 401k, or Variable Annuity) be subjected to, or exempt from, the proposed trader tax? (i.e. funds cannot be withdrawn from such tax-deferred accounts until age 59 1/2).”

Also, in general, I would appreciate your opinion on whether this proposed Trader-Tax HR 1068 legislation is likely to pass.

Thanks very much. Jim

Ray @ 2:02 pm

The government will not be happy until we are all good little W2 slaves.
Once the government is happy I can assure you, you will not be.

Tate Dwinnell @ 6:49 pm

Jim, details are lacking at this point but the bill states:

(6) This transfer tax would be on the sale and purchase of financial instruments such as stock, options, and futures. A quarter percent (0.25 percent) tax on financial transactions could raise approximately $150 billion a year.

With Rydex, ProFunds and Direxion you’re referring to ETFs not mutual funds. These trade just as a regular stock would and would be taxed accordingly I’m sure. As for mutual funds the higher costs will be passed on. That’s the ignorance of this bill.. it says it can be cited as “Let Wall St pay for the bail outs” but Wall St includes everyone who owns stock. Everyone will get hit on this.. it’s just another way for government to have more control over our lives.

Tate Dwinnell @ 6:50 pm

I would be shocked if this gets passed the review stage.

March 12, 2009

Jame P. @ 3:08 pm

If the could tax the air we breath, they would. Know who you vote for.

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