Comments on: U.S. financial reformers hang tough to bitter end http://blogs.reuters.com/breakingviews/2010/06/25/u-s-financial-reformers-hang-tough-to-bitter-end/ Mon, 17 Jun 2013 22:19:50 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Acetracy http://blogs.reuters.com/breakingviews/2010/06/25/u-s-financial-reformers-hang-tough-to-bitter-end/comment-page-1/#comment-2971 Acetracy Mon, 28 Jun 2010 11:29:12 +0000 http://blogs.reuters.com/columns/?p=3392#comment-2971 The 100's of pages of new regulation will do practically nothing to stop the rampant speculation that has taken over US financial markets. Why? Because the US tax rates encourage short term trading, derivatives income at the expense of real investors. For example, Federal Income tax rate is only 10% on derivative income from options written on broad based indices!! Many hedge funds, after deducting interest expense for their margin lending, realize effectively tax rates under 20%. HST, proprietary trading, hedge funds, and the derivative trading have morphed the US financial markets into the new Las Vegas. The resulting boom/bust has ruined the prospects of individual investors trusting US equity markets, let alone the ruinous affect it has had on real capital formation. The solution: All trading profits for holding periods under one day taxed at 80%; under 6 months taxed at 75%; all the way down to period over 5 years taxed at 15%. No exceptions for off-shore, pensions, retirement accounts or any other investment vehicle on taxing profits held under one year. The 100′s of pages of new regulation will do practically nothing to stop the rampant speculation that has taken over US financial markets. Why? Because the US tax rates encourage short term trading, derivatives income at the expense of real investors.

For example, Federal Income tax rate is only 10% on derivative income from options written on broad based indices!! Many hedge funds, after deducting interest expense for their margin lending, realize effectively tax rates under 20%.

HST, proprietary trading, hedge funds, and the derivative trading have morphed the US financial markets into the new Las Vegas. The resulting boom/bust has ruined the prospects of individual investors trusting US equity markets, let alone the ruinous affect it has had on real capital formation.

The solution: All trading profits for holding periods under one day taxed at 80%; under 6 months taxed at 75%; all the way down to period over 5 years taxed at 15%. No exceptions for off-shore, pensions, retirement accounts or any other investment vehicle on taxing profits held under one year.

]]> By: jpinsatx http://blogs.reuters.com/breakingviews/2010/06/25/u-s-financial-reformers-hang-tough-to-bitter-end/comment-page-1/#comment-2969 jpinsatx Sun, 27 Jun 2010 14:18:29 +0000 http://blogs.reuters.com/columns/?p=3392#comment-2969 Hmmm... All the charts, graphs and technical terms cannot hide the truth... the problem is and has always been Employment. The USA exports more JOBS than any other country in the entire world. How do we reverse it? How do we stop it? How do we put Americans back to work? Not with tax cuts. Not with deregulation. Not with bailouts. Not with stimulus money. Not with health care. Not with interest rates. In the USA, there is only one way fix the problem... Stop Exporting Jobs and Importing Products. Make Outsourcing Unprofitable! Hmmm… All the charts, graphs and technical terms cannot hide the truth… the problem is and has always been Employment. The USA
exports more JOBS than any other country in the entire world. How do we reverse it? How do we stop it? How do we put Americans back to
work? Not with tax cuts. Not with deregulation. Not with bailouts. Not with stimulus money. Not with health care. Not with interest rates. In the USA, there is only one way fix the problem… Stop Exporting Jobs and Importing Products. Make Outsourcing Unprofitable!

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