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Traders Tax: H.R. 4191 (H.R. 1068) in Congress Now

I don't post in here often, but look through the forum here a lot. I just got an email an about this new traders tax bill in Congress now. From what I understand this could ruin day trading for everyone.

The email had a link to go to and sign a petition to send to U.S. Congress.

I just signed the petition and figured all the traders in here would want to as well as it is very important they don't pass this bill.

www VoteNo1068 com (this link no longer works so disabled)

edit: Link to H.R. 4191
Latest Installment...

A group of consumer watchdog organizations and labor unions sent DeFazio a letter this week supporting the tax bill.

“Your bill would put Wall Street to work for the public good, by placing a modest securities transaction tax on trades of stocks, options and swaps. A tax on these trades has little impact on the average investor or pension fund because they hold their investments for the long term, but it does disincentivize Wall Street gambling and high-volume short-term speculative trading,” the organizations wrote.

The groups include: Americans for Financial Reform, Public Citizen, the Service Employees International Union (SEIU) and the AFL-CIO, among others.
Now being discussed on Bloomberg TV.

Here's a Bloomberg article:

I really think this is going to happen...
Robert Green, CPA of Green Trader Tax recently started a new online petition at I would suggest signing this and passing along the link for others to sign. I already signed a different rallycongress petition earlier this year but since this issue keeps coming up, one can never have enough options and petitions to sign. If foolish politicians can be so persistently incompetent, we traders need to be that much more persistent and pro-active in defending our careers.

BTW, there is a good discussion of trader tax issues at
This story is like trading a momentum stock... last week it would take in $60 billion, now magically this week it will take in 2x to 4x that ?

"By levying a small fee when stocks, futures, swaps, options and other securities are bought and sold, supporters of the tax believe the government can take in between $120 billion and $240 billion annually. That money could be used to fund additional government stimulus to help put the nearly 16 million unemployed Americans to work."
That's why I have such a pessimistic attitude towards this. It's all nonsensical hype. Soon it will bring in a trillion. Get those bad traders who contribute nothing. I know for sure if I'm forced out of any trading prospects I will surely take my capital and open a 'real' business that is productive and doesn't leech off society. And when I open my shop in a mall selling useless trinkets made in China to people that don't need them, I can feel productive again, using my capital for the greater good of all. And the Vampire Squid can keep making $100 million a day, also for the greater good (after all they said they are doing God's work), as we all know they will be exempt. I'm just frustrated to get screwed over in all the ways we all have been as taxpayers and citizens by all this mess, and now this.
Looks like the idea is creating some more "noise" at higher levels now:

"WASHINGTON (Reuters) - A proposed tax on financial transactions "has a great deal of merit" and would help Congress raise needed revenue, U.S. House of Representatives Speaker Nancy Pelosi said on Thursday."

Cool, the House passes a 45% death tax on the same day this hits the headlines. These [email protected] are power hungry, money grubbing thieves. Has anyone, especially the elected Congress folks, read a tad bit on the history of our country and of how/why taxes were to be handled and their purpose.

It went way off the reservation a while back and now it's not only become status quo, but assumed to be the role of the Fed Govt. to decide what they want to confiscate (and how) from "The People."

The lunatics have taken over the asylum!!!
Originally posted by pt_emini

Please feel free to correct my math here:

The value of one ES contract is 50 times the underlying index price, so if the index is trading at 800, the value of one ES contract is $ 40,000. Applying the new 0.25% transaction tax we have:

$40,000 * 0.25% = $ 100 per transaction

One round turn trade represents 2 transactions (1 buy and 1 sell).

Can E-Mini scalpers collect unemployment ?</i></b>

Trader Tax = $100 * 2 = $ 200 per round turn
The margin money for Emini S&P is $500.00 per contract. Lets hope that this is the amount factored in to calculate the 0.25% TT ($1.25X2=$2.50) If this happens we might get away with around $9.00 round trip including brokerage.

For Immediate Release: December 3, 2009
Contact: Alan Barber, (202) 293-5380 x 115

Over 200 economists, including James K. Galbraith and Dean Baker, have signed a letter in support of a modest set of financial transaction taxes, which could raise a substantial amount of needed revenue while having little impact on trades that have a positive economic impact.

The cost of trading financial assets has plummeted over the last three decades as a result of computerization. This has led to an enormous explosion in trading volume, with most trades having little economic or social value and redistributing disproportionate resources to the financial sector. A set of modest financial transactions taxes, which would just raise trading costs back to the level of two or three decades ago, would have very limited impact on trades that have real economic value.

Such taxes could both reduce the volume of speculation in financial markets and provide substantial revenue for either important public purposes and/or deficit reduction. Financial transactions taxes could be an important part of a reform package that seeks to remake the financial sector so that it better serves the larger economy.

In my opinion Economists do not know anything about trading?
News on says "Harkin said he will introduce the bill in the Senate next week with Senator Bernard Sanders, a Vermont independent who caucuses with Democrats.

0.25 Percent for Stocks

The measure would be based on legislation DeFazio proposed in the House that would apply a tax of 0.25 percent or 25 basis points to stock transactions in excess of $100,000, and a levy of 0.02 percent or 2 basis points on derivatives including futures, options, swaps and credit default swaps. "

So from 0.25% we are now down to 0.02%. That's a big relief........ What do you all say friends?????