US congressman Peter DeFazio, on February 13th, introduced H.R. 1068 “Let Wall Street Pay for Wall Street’s Bailout Act of 2009” better known as the trader tax bill. This bill imposes a 0.25% tax on every transaction made involving securities. This bill will create a massive expense for day traders but will affect more than Wall Street. Government has failed to realize that the public relies on Wall Street for retirement, not government pension that our congressmen/congresswomen are entitle to.
This little tax will increase the expenses of mutual funds managers which will eventually trickle down to you. It will also dry up liquidity in the markets as day traders will have to seek higher returns just to be profitable. This tax combined with the increase in capital gains tax will punish investors, traders, and those just seeking to save for retirement.
I don’t expect this bill to pass as many are opposed to it. Voice your opinion by emailing Congressman DeFazio or by signing the petition at RallyCongress.com. You can also track the progress of this bill at GovTrack.us.
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