The government is trying to change taxation on your futures transactions:
http://www.govtrack.us/congress/billtext.xpd?bill=h111-1068
Use this link to vote against the proposed bill:
http://www.rallycongress.com/no2tradertax/1536/tell-congres-to-block-trader-tax/
Reach out and let you Representatives/Senators know what you think!
It’s easy to do online:
Congressional Contact Info
With today’s technology, many Members of Congress do not even accept “old fashioned” email anymore. Rather, they utilize an internet-based “web form” system of communications. Below you will find links to a few sites that we have found to be useful. Simply choose the site that works best for you.
This is the Official website of the United States Senate. When sending your message you will be asked to:
1.Select your home state under “Find Your Senators” and click “GO”
1.Select your home state under “Find Your Senators” and click “GO”
(top right corner of page).
2.Click on “Web form” link under Senator’s name.
3.Complete contact info section and write your message.
The Official website of the United States House of Representatives. Here, you can send a message using the web form for your specific Representative. All you need is your full 9-digit zip code which can be found on your drivers license, junk mail, or a utility bill. When sending your message you will be asked to:
1. Select your home state and enter your 9-digit zip code.
2. Complete the steps in the form (contact info., etc.) 3. Write your message.
A link to the web form for President Obama. Simply fill in your contact information and write your message.
Filed under:
Miscellaneous, Politics
Hello Steve,
I have two questions regarding this proposed “Trader-Tax”, which I cannot find answers to.
My question specifically pertains to how this proposed tax might apply to an individual who trades open-ended mutual funds (not ETFs):
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 (i.e. funds cannot be withdrawn from such tax-deferred accounts until age 59 1/2).”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.
Thank you very much for any thoughts. These are difficult enough times,…this proposed tax is unbelievable.
Hi Jim,
The bill states that Trader Tax or “Securities Transfer Tax” is a proposed 0.25% tax on such financial instruments as stocks, options and futures. I would assume that it would be passed along to purchasers of such collective funds in some way. It would only make since, as the owners would be taxed as they transferred the underlying stocks, futures, etc.
With regards to 401k I have no reason to think that it would not apply. It’s not all that unbelievable as the US had a Transfer Tax from 1914 to 1966. It levied a .2 percent tax on financial transactions. And on top of that in 1932, Congress more than doubled the tax during the great depression.
The collective “word on the street” is that it is unlikely to pass. I will do some research over the weekend and try to get more details and post.
Thanks,
Steve