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Thursday, February 19, 2009

Oh sure, kick a market while it’s down

Congressman Peter DeFazio [D] of Oregon introduced HR 1068 to the healthcare stimulus bill:  “Let Wall Street Pay for Wall Street's Bailout Act of 2009”, which aims to impose a 0.25% transaction tax on the “sale and purchase of financial instruments such as stock, options, and futures.”

Here’s what I wrote to my representatives:

The transaction tax proposed will hurt liquidity in the market place by discouraging trading. A .25% tax is going to put many trading models out of business, hurting market liquidity at a time when market liquidity is vital to the health of our economy. Why would you penalize investors for the faults of banks? I am about to embark on a new small business trading stocks for a living. This would put my business plan in direct jeopardy. You already tax me significantly for my gains -- now you want to tax me for my losses, too? Give me... and the investor... a break. This is an extremely regressive, misinformed and potentially catastrophic tax proposal. Please leave the stock market alone, it's having enough trouble.

Here’s the link if you want to craft your own objection.

1 comment:

Amit Ghate said...

I signed it too. And FWIW here's an editorial I wrote looking at the tax and its implications on our public markets:

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