I was probably duped. I thought the GOP tax bill was a good thing but I guess I should have read the fine print. By declaring every trade, a "taxable event" it makes compliance virtually impossible.
In years past, traders paid taxes on their net gains. Now, they are required to calculate the dollar value of a coin or currency or commodity at both the time of purchase and the time of sale. A trading bot can make hundreds of trades an hour. Calculating the US dollar value of a commodity at time of purchase, then recalculating its exact value at the precise tick when a portion is sold would ultimately result in a mountain of paperwork that no real trader could complete.
But the tax bill might be more onerous than just the compliance factor. If every trade is a taxable event, trading as we know it, will grind to a halt. This would be catastrophic. And yes, it would mean fewer dollars for the treasury.
Day traders might not make great poster children but that is not to say that they don't play an important role in supporting the integrity of securities markets. And if they are all chased offshore, America is NOT made great again.
Most of the focus so far has been on cryptocurrencies. Maybe there is a big bank conspiracy to kill off competition. But the tax bill will crush FOREX and commodity and stock traders as well.
THIS GUY SPELLS IT OUT
MORE BAD NEWS
BAD NEWS IN LEGALESE. CAN YOU IMAGINE KEEPING TRACK OF LIKE KIND FORMS IN ADDITION TO YOUR TRADES?????
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