The mere prospect of a tax on securities transactions struck fear into the heart of Wall Street, which rallied its considerable lobbying forces. But folks can breathe easier now--at least a little bit. A bill by Rep. Peter DeFazio (D-Ore.) that included a 0.25 percent tax on stocks, futures, swaps, credit default swaps and options now appears to be dead.

According to Traders, a separate bill in the Senate likewise appears dead, as it never cleared committee. While high-frequency traders (high-frequency trading news) especially are feeling better, it should be noted that the idea generated a lot of excitement and support from surprising places. John Bogle, the founder of Vanguard, for example, emerged as a vocal supporter.

We may see some Congressmen attempt to revive the idea by including the tax provisions in another bill, no matter how unrelated it may be. It would raise a huge stink if that were to happen. More likely, supporters will try to rally an effort to make the tax a reality next year. 

For more:
- here's the Traders article

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