1/4% Tax on all stock trades pushed in NY Times today

Quote from icarus618:

Yes, that's the talk anyway, by 2016. The supposed rationale is to offset the fact that there is no income tax on the gains. The rates proposed are much lower than that of the Tobin tax - 0.001% on KOSPI 200 index futures trades and 0.01% on the index options.
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I'm envious that you can manage to ignore all this talk of the FTT. I can't. Not because I trade for a living, but more for my pensions. The rates mentioned by the EU is quite high.
 
Quote from Pasternak:

I'm envious that you can manage to ignore all this talk of the FTT. I can't. Not because I trade for a living, but more for my pensions. The rates mentioned by the EU is quite high.
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Oh I haven't ignored the chatter about the FTT. But instead of concerning myself with what the politicians and bureaucrats are inclined to do, I just focus on what I'm going to do.

As another poster stated, independent traders are not a protected class in this country. When a law is enacted in the name of protecting traders, you can be sure that it is to screw them over. See Pattern Daytrading Rule.

In the U.S. the Tobin tax has little support right now. But I know that can change quickly because of the current wealth-redistribution fervor in this country. In Europe the FTT appears to be gaining traction, unfortunately.
 
Quote from bjw:

so assuming this post is still current, we can update it a bit. romania and lithuania both seem willing to vote yes now

so you have definite yes from "the 11": austria (10), belgium (12), estonia (4), france (29), germany (29), greece (12), italy (29), portugal (12), slovakia (7), slovenia (4), spain (27). plus lithuania (7) and romania (14).

definite no's from UK (29), Czech Rep (12), Sweden (10), Denmark (7), Ireland (7), Luxembourg (4), Malta (4), Finland (7). that's 80, we need 88.

so that leaves 8 point that should come from

hungary (12) is about to introduce its own ftt, so seems likely "yes", but then again. searching google suggest they have purposely introduced their own tax, and not joined the cooperation, because they don't like the set-up (and probably just want to keep proceeds for themselves). not a likely supporter for our case, but who knows.

cyprus (4) seems like a likely no and should give us 4 of the 8 points we still need. they have always been negative, let's hope that doesn't change with the bailout package they might need from europe and the negotiations preceding that.

poland (27). who knows really.

netherlands (13). being dutch myself i know the fight isn't over yet. 1 of the 2 governmental parties has made strict conditions (and doesn't really want the tax at all), which likely won't be acceptable for the remainder of the EU. Assuming they won't flip-flop, the FTT-battle is definitely not decided yet. I'm not sure if that will mean they'll vote no though, I'm fearing they might vote yes (or abstain, if that's at all possible), but simply not join the cooperation for now.

finally latvia (4). could be key player and google suggest they're not in favour yet, but again, who knows.

edit, and i forgot bulgaria (10), this link from october still suggest a no. http://www.novinite.com/view_news.php?id=144428

anyway, sounds like it will come down to the last couple of points to decide this, but it's really not looking that bad. which also would explain why there hasn't been a vote yet.
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"poland (27). who knows really."

If they vote solely on this issue then they'll probably vote no, but if they vote with a view to a wider context then who knows, as you say...

http://www.bbc.co.uk/news/world-europe-20717943
 
I have found an other argument that pro-FTT people have a hard time dealing with... I was talking with a pro-FTT half commie non profit whatever girl the other day and I had a hard time arguing with her until I said : "Well, look 0.01% of a typical futures contract is 100000 * 0.01% = 10 $, last year I created a new company and did all the necessary paperwork ... to get an electronic membership at CME and save 1$ per contract. This is pretty much the difference between professionals and retail traders, 1 $ of exchange fees. You are trying to make us pay 10. Good luck." She didn't believe my margin profit was smaller than the tax until I explained that.
 
Tax on financial transactions: easy to design, difficult to implement

French government report on behalf of the European Affairs Committee, filed December 21, 2012 for the French Senate

http://www.senat.fr/rap/r12-259/r12-259.html

Report appears to be critical of the extra-territorial nature of the European Commission's proposal and (if I've understood it correctly) recommends scaling it back to tax only those transactions that occur in the EC-11 zone and where at least one counter-party is resident.

Can anyone shed any light as to whether this report might have any influence in France?


[...]

(google translation)

5. Adopt the principle of "territoriality limited"

All financial transactions should be taxed, but they should be on the territory of those who have adopted the tax. This principle of territoriality limited must be combined with the principle residence of the parties to the transaction.

At this point, we may reasonably require that all financial transactions taking place on the territory of the EU (or a fraction of the territory where enhanced cooperation) is taxed when at least one party is established the said territory, thus avoiding extraterritoralité tax.

It is illusory to believe that the London agree to be taxed and lose its raison d'être by the lack of a massive transfer of activities outside Europe. Also illusory to hope that Luxembourg could accept that the management of investment funds to become more expensive.

[...]
 
This is great. French senators are calling the commission project a failure and advocating a much smaller tax( like the french one or a stamp tax ) which would occur only on territorial exchanges. They think that's why they couldn't reach an EU wide agreement and opted for EC. They say it's an attack to the fiscal sovereignty of foreign countries and should be abandoned.

They also say that the current rates are too high and that the burden will probably be end up on retail investors. In fact, they actually make more sense than the usual french politicians, it's quite scary...LOL
 
However, the senator in question is from UMP and not Hollande's party. But it just sounds like France is not in a hurry to have a bigger tax. Prime Minister recently said they "haven't ruled out" having a broader tax( but it isn't a priority ...)
 
Quote from Robert A. Green:

google alerts have been quiet until this one tonight.
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As we said in the first post in this thread: "Our goal is to get the volume of the talk of this tax down to zero."

It's been nice & quiet lately.

Hopefully, when the Democrats go on their search for "more revenue without raising tax rates", this issue doesn't reappear.

Happy 2013 Mr. Green.
 
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