Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,384
Thanks Received: 10,206
Yesterday, August 5th, Senator Ron Wyden (D-Ore) proposed the Modernization of Derivatives Tax Act . Obviously a proposed bill isn't law (yet) but one of the things in the proposal is the elimination of the 60/40 tax break for futures.
“While working folks pay tax with every paycheck, wealthy investors exploit gaping holes in the tax code to avoid paying tax on profits from their bets on financial markets. It’s a double standard, and we’re going to put an end to it,” Wyden said. “Under my bill, wealthy investors would pay tax on their gains every year—just like working people do.”
Oh the drama... I don't consider myself a wealthy investor but have benefited from the "gaping hole" 60/40, just like other working people do. Another money grab. Thanks for the heads up @SMCJB
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,384
Thanks Received: 10,206
I obviously see what they are trying to do here. The problem with futures is there almost is no such thing as a long term capital gain. You never hold a a contract for a year. You might hold a position for a year but you have to roll it multiple times. Every time you roll it, it resets the holding period. Plus with futures you already are marked-to-market at year end. While the tax rate maybe lower than other investments, nothing goes untaxed for years in futures. Seems like a fair trade off.
I did.a quick google search and I see Wyden has been trying to push this same bill since at least 2016. I don't know why this is stressing me out, but it is.
I stopped following politics on the national level because everything became….extra. There doesn’t seem to be any room for nuance. I suspect the current tax treatment is as good as it is ever going to get.
I think there is no chance at all that this will pass anytime soon. Congress is very evenly divided and the only way the Dems will get anything through will almost require unanimity on their side, which will not likely happen that easily. This bill may get in, but I think they will have more than enough to worry about without it.
Breathe easy, I think.
And now the disclaimer: I don't have the foggiest idea if anything I think on any political question is right ot not, and I never have.....
But I'm not worrying, anyway.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
And, @SMCJB, shouldn't this all be in the tax thread? I just noticed you posted about the bill there too, and that made me think about this being a split topic.
Is there any reason you can think of why this thread should not be merged into the established tax thread, before it has taken on a life of its own?
Let me know what you think.
Thanks.
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
That's what I was thinking of when I said they would need all their members. This is still not a slam dunk, to get all the members of any party united on something that is not a major party issue.
Anyway, what do you think about my question on the tax thread?
Bob.
When one door closes, another opens.
-- Cervantes, Don Quixote
