Must I declare my profits from FX trading for tax purposes?

Why not a special tax on trading income and profits?

• With the advent of electronic trading, paper profits are being made by traders who can move markets and ruin companies by their trades. These efforts provide no jobs, add no productivity, and distort the money supply and wealth. These are the causes of most of the income ineqaulaity that is being talked about. Trading should be done for long term investment not for quick gains. Companies can not make long term decisions that could harm the current stock price and its ability to borrow. I dont like the tax but we need to stop the markets from putting us all at risk and providing no economic benefit with today's trading strategies. So far that trading has caused the tech bubble, the housing bubble, and now the soveriegn debt bubble. How many more till we get it under control?

• Answer:

  Trading does help in making markets more efficient and making the raising of capital easier and it does create a few jobs. That being said, these profits could just as easily be taxed at ordinary income rates of up to 35% rather than 5% - 15% and excluding them from the 25% alternative minimum tax.