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

The EU FTT is apples and oranges globally, and it won't pass unless it's either apples OR oranges worldwide. So, its impossibly out of whack already and now dead on arrival. Here's why.

The EU FTT mentions bank taxes, charging banks for bailouts and blaming them for the meltdown.

The UK already passed a FAT and won't double charge banks with a FTT - which is also easier to escape offshore. The US stopped bank prop trading with Dodd-Frank's Volcker rule, so banks won't be paying FTT even if it was passed. That's why Obama's budget proposes a bank responsibility fee - balance sheet tax FBT.

FTT, FAT, FBT - apples and oranges - and the vengeance is getting old and that boat already sailed. No way now to forge FTT globally and whoever does will lose transactions.

Right after the crisis, some banks imploded so people figured they were to blame. But it's clearer now that government, business and consumers went on a debt-financed spending spree. It takes two to tango, the debtor and creditor. Bank bashing populism misses the mark. The EU is all talk and no action, they know better than burying their banks. PIIGS can do that without an FTT.

Any politician in the US that supports a FTT, to make banks pay, has clearly not read Dodd-Frank and is very misinformed and not worthy of office.
 
Quote from TraDaToR:

Most clearly don't have a clue. It's laughable.

http://www.europarl.europa.eu/sides...EP//TEXT+CRE+20110307+ITEM-017+DOC+XML+V0//EN
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It is interesting to read in the transcript both of Mr Semeta's addresses, at the beginning and at the end of the debate, where he cautioned against voting for the FTT until after his impact assessment is published this summer.

It is clear that he understands the risks of capital flight and it seems probable therefore that his impact assessment is not going to recommend an EU-only FTT.

If that turns out to be the case, the celebrations of the pro FTT MEPs are likely to be shortlived as the largest group in the parliament, the 265 MEP European People’s Party have said their support is conditional on the impact assessment being in favour of the tax. In the vote 529 MEPs in backed the report, 127 voted against and 19 abstained.

http://www.moneymarketing.co.uk/pen...for-financial-transaction-tax/1027379.article

Semeta's First address:

Algirdas Å emeta, Member of the Commission. − Mr President, I would like to thank the Committee on Economic and Monetary Affairs and the Committee on Development, and in particular Anni Podimata for her report on innovative financing at global and European levels.

I have already had the opportunity to debate with you several times on how to make the banks pay for the costs of the crisis. As you know, the Commission is preparing an in-depth impact assessment on instruments for the taxation of the financial sector, to be delivered by summer 2011.

This will enable the Commission to make appropriate proposals on policy actions. In addition, we are also scrutinising the cumulative impact on financial institutions of new regulation, bank levies and taxes and will present the results later this year. I would encourage you to wait for the results of the impact assessment before taking any firm position on the introduction of a financial transaction tax at EU level.

[...]

Second address:

Algirdas Å emeta, Member of the Commission. − Mr President, I would like first of all to thank you for this very interesting debate. Opinions are divided on the question as to whether the EU should envisage introducing a financial transaction tax at EU level as a first step.

The figures that are circulating might appear attractive. However, I am convinced that we should first evaluate the risk of relocation and the consequences of such a tax for European competiveness. As you know, financial transactions are easily relocated outside the EU. Previous examples such as in Sweden have shown that the introduction of FTT at local level could harm legitimate businesses and erode the tax base to a large extent. This was very clearly illustrated by Mr Schmidt and Mr Hökmark.

As I said in my introductory speech, I would encourage you to wait for the results of the impact assessment in order to define a well-founded position in this area. I can assure you that this impact assessment will be conducted very thoroughly. You know that in February we launched a public consultation on this subject. At the end of March we will have the Brussels Tax Forum, which will be completely dedicated to the issue of financial sector taxation. We are working in close cooperation with academia and the IMF on this subject, which I would like to see analysed very seriously in order to make decisions based on solid foundations.

The issues at stake are very important, and many of them were raised during this discussion, such as the impact on high-frequency trading. We also have to analyse tax incidence. Some of you raised the question of who will pay the tax. There is no obvious answer here. We also have to analyse the cost of administration; we have to analyse tax bases and many other issues which have to be taken into account in order to make a final decision.

So I would like to ask you to wait until the Commission has finalised this impact assessment. We have committed ourselves to doing this by the summer break.

Otherwise, I welcome the report which globally supports the actions of the Commission in innovative financing, in particular in the area of carbon tax, euro project bonds and development financing. Once again I would like to thank Mrs Podimata for her excellent report, and I wish you good voting tomorrow.
 
Politicians talking about "High Frequency Trading". The transaction tax is not a funny subject but at least they sure made us laugh sometimes.
 
Well, if everyone has not heard this by now, a major earth quake (8.9 Mag Quake) has hit Japan, which has also triggered a major tsunami. I just heard that Taiwan, Hawaii, and the entire west coast of the U.S. is now under a tsunami warning.
My point here is that let's hope their aren't many people killed or injured. But there's one thing we can all count on here, and you know where I'm going with this. There will be screams from all libertard activist groups for a FTT to help aid the victims of this, and help with rebuilding efforts in Japan, and wherever else the tsunami hits. From the news reports I'm hearing, the tsunami is currently headed for Taiwan, then Hawaii, then the west coast of the U.S. I hope this doesn't cause massive amounts of destruction or loss of life.



http://www.google.com/url?sa=t&sour...Z8GGmvrQJhXS9buqA&sig2=ub86D6RIpqMKFjf3W072Jw
 
Quote from TraDaToR:

http://www.euractiv.com/en/euro-finance/commission-moves-tackle-taxed-banks-news-502890
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It seems the more Semeta talks the more it sounds like he's less likely to recommend the FTT. He keeps saying that it would only make sense if the US is on board. I guess thats a nice way for him to use the US for political cover.

I found this interesting:

"Even though this debate has been raging for at least a year industry sources have grown shy of making comments."

"The European Savings Bank Group in Brussels declined to comment and said it did not have a position regarding an FTT or an FAT yet."

"The European Banking Federation also declined to comment."

I wonder what these groups are waiting for? Maybe they know that the forthcoming report is going to recommend a FAT tax therefore there's so reason to stir the FTT honeypot?

-Guru
 
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