1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
My apologies, but it is on topic. I am just commenting that small nations are not like big ones.
I thought so too that it is on topic.
Just few points on EU FFT since many here hope that EU will fail to implement FTT or when implemented it will prove that FTT is bad idea.
Yes it is but for EU bureaucrats and socialist (and also socialist blondes) it does not matter:
- markets are tiny and not significant
- retail trading is marginal
- banks and financials are monopolized and government dependent
- EU can leverage bailout needs and the list of supporters matches priority list who needs bailout next. In that sense GB, the Netherlands and others may not want to shut the door because they are not in great economic shape either
- once FTT is in place it is easier to manipulate asset prices and market activity including volumes
- the goal is to keep bond printing going without interference from free markets that tend to do stupid things that bureaucrats do not want like checking what the bonds are really worth.
The only real question is how long it will take them to put it together and what regulatory mess they will create in the process (sure thing). Next question is how many holes in the regulation can be exploited.
Real issue is GB, US and Asian money centers. For the US GOP win would delay FTT ( hopefully) because their official platform is against FTT and global UN taxes.
So a Chinese man in China buys a share using his Chinese broker, the share was issued in Australia yet currently owned by a trader in Germany, and he is expected to pay the tax?
Is that what I am reading? If so it is impossible to implement and brokers globally will just ban traders from these country's using there services.
Actually this doesn't have to be a bad thing. When a bunch of countries start implementing FTT themselves and see that it doesn't give them the revenues they expected (along with capital and company migration). Chances might increase that they won't back a EU wide tax that is powered and managed by Brussels, which is a direct EU tax and out of domestic control.
Just a thought...
yes, that's what's so mystifying about this whole residence-based principle. it keeps being mentioned, yet when you think about the practical application of it all it just doesn't make sense, as it would involve every single investor out there trading at any exchange in the world having to worry if they're not trading with someone european. obviously that's not going to work. just banning every single european party from every single non-european exchange isn't going to work either.
the very obvious thing that would practically work is a uk-like stamp tax. and the only ftt in place so far, the french, also isn't based on residency. i've been saying this for at least a year now, yet the EU still goes on about the residence-thing. it's a complete mystery to me why they go on about something that in my judgement is impossible; i must be missing something, yet i don't understand what it is.
edit. and now the italians come along with an ftt that's also non-residential. i can only describe this as good news for the residents of these countries, as you can still keep trading us (and other worldwide) exchanges.
