Answer by Wray Rives:
- The US House has to propose an amendment to the Federal Revenue Code, that says intra day trading profits are taxable at 50%. This generally comes from the House Ways and Means Committee.
- The US House has to vote on and pass the bill
- The US Senate has to either vote to approve the bill exactly as proposed by the House or send it back to a conference committee to hash out amendments.
- (a)If the Senate approves the bill, they send it to the President
(b) If the Senate does not approve the bill then it goes back to step 2 based on proposed changes from the conference committee.
- The final approved bill is either signed into law by the President or vetoed by the president.
- Finally the IRS will do whatever Congress and the President have told it to do and start taxing intraday trade profits at 50%.