PTT, another Trader Killer
First it was the PPT that everyone mockingly worried about, as if they didn’t exist.
LOL, of course they do, Virgina. Their footprints are observed almost everyday.
If you have been around the markets the past year or so, you have become aware of another clandestine enemy of traders, and a far more egregious one: The PTT.
The problem with The Proposed Trader Tax is more clearly explained by experts like Robert Green.
Here is a comment from one of our members behind closed doors, and I felt it belonged out here because it is that important.
I use Green Company to do my taxes. Robert Green is highly active in trader-related stuff, including the proposed trader tax on each and every (both ways) trade in the amount of 0.0025% of the transaction amount. Doesn’t sound like much, and advocates will tell you it’s not much, but the math says you’ll pay $250 on a 1000-share round trip on a $50 stock, WHETHER YOU PROFIT OR NOT.
This is a link to one of his blogs on the subject. The article has links to relevant info. I strongly suggest we all do whatever we can, like writing our congress people, to try to prevent this happening. Many of us cannot absorb the cost and will go out of business. I know I will. Seriously, not having a fall-back occupation, I am already checking into work at a local supermarket. I will lose my home, my daughter’s college, be forced into bankruptcy. I can’t be the only one…
I intend to question my congresspeople as to why I, as a trader, should have a special tax imposed on me while no other occupation (I can think of) has such a tax. Why do we, and no one else, have to pay to work?
Truckers pay a tax based on mileage (also taxi, bus drivers, etc., heck, how about everybody who drives/rides/flies/walks during the course of their work?)
Hairdressers pay an extra tax for every client – also any other service-persons: waitresses, lot-attendants, etc.
Doctors, dentists lawyers and other professionals pay a per-patient/client tax
I could go on and on but you get the point. If they say it’s because we caused this mess well that’s just plain ridiculous. And the labor unions’ support of this tax makes sense, I guess – they want me to be a Retail Clerk.
In our previous blog, “Math is a letter word” , we reference the brilliant Don MIller, who earned 1.6 million + trading a year ago, as earning 1 to 2 tics on average per trade. How will us mere mortals survive, if this legislation becomes enacted?
Do what you can to help please…
Back in 1995 I was reading Richard Maybury’s ideas. They are still relevant today. He warned of government becoming too big, spending too much money, and causing taxes to become crushing to pay for the war effort, that he had already described as the beginning of the WWIII.
I agree with his philosophy: I love our country but have no patience for our government.