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

[tomdavis]

Let's hope the UK, Sweden, the Netherlands and Malta hold their ground.

Regarding G20 "partners": The US, the UK, Canada, Australia, Brazil, Japan and South Korea have all said "no" to the FTT. I don't know of any G20 country that's said yes. So it's a mystery who Barroso is talking about.

Quote from andohmeeta:

http://www.tax-news.com/news/Berlin_Institute_Favours_Financial_Transactions_Tax____51661.html

Final sentence: "But of course all such arguments are based on the assumption that the UK (not to mention other member states) will allow such legislation in the first place. Tax matters still require unanimity among member states, which seems inconceivable on such a subject".

(Can't figure who the G20 "partners" Barroso is talking up in my previous post. He doesn't appear to have any).

 

[Businessman]

Quote from tomdavis:

Let's hope the UK, Sweden, the Netherlands and Malta hold their ground.

Regarding G20 "partners": The US, the UK, Canada, Australia, Brazil, Japan and South Korea have all said "no" to the FTT. I don't know of any G20 country that's said yes. So it's a mystery who Barroso is talking about.

Its clearly not going to happen at G20 level or even in the wider EU as the UK wont have it.

The only risk for us on ET is the Germans do it with a few other eurozone members.

Lots of DAX,Eurostoxx, Bund, Shatz etc traders here im sure. Liquidity would dry up in these markets with a FTT to the point of making them untradeable for intra day traders, unless lots of exemptions are given.

 

[listedguru]

Quote from andohmeeta:

http://www.gfsnews.com/article/3101/1/EC_sets_out_transaction_tax_plan


"Leaked proposals seen by Global Financial Strategy show the proposals will impose the tax on the instructing party, rather than where the transaction takes place in a bid to alleviate fears of businesses relocating outside Europe to avoid the tax. This means transactions outside the EU will also be taxed.

EC commissioner for taxation Algirdas Å emeta said: "With this proposal the European Union becomes a forerunner in the global implementation of a financial transaction tax.

"Our project is sound and workable. I have no doubt this tax can deliver what EU citizens expect; a fair contribution from the financial sector. I am confident that our partners in the G20 will see their interest in following this path."

Yesterday they said it would raise 10B now it's 55B Euro's?


"The commission adopted the proposals in Strasbourg last night. The tax is expected to raise around €55bn annually and the EC says the revenue will be wholly or partly used as a resource for the EU Budget, which would replace certain existing resources paid out of national budgets."

I really want to read the fine print on this proposal.

-Guru

 

[FightTheFuture]

Quote from sheda:

Im seeing the above reporting based on the assumption that money collected will be invested in areas to stimulate growth, there by taking the hit down from 1.76 per cent to 0.5.

http://www.businessweek.com/news/20...nancial-transaction-tax-to-start-in-2014.html

another day in the circus....

That's some really powerful stimulation. With the tax, they remove €10bn from the economy and create €216bn in GDP losses, yet when they take that to stimulate, it creates €155bn less loss.

It's even more amazing because they said they will send most of that €10bn to Africa to cure poverty (Robbing Hood Tax) and also use it to reverse global warming to save us all. Or something. They admit they are not sure. But the MEPs are looking forward to a pay raise with the increased funding. With so much confusion and billions of Euros lying around, I wonder if there will be opportunities for corruption.

Stimulous. They are so full of waste matter. What, a hundred times or more spent on stimulous in the US over a year or two than the €10bn with meager if any results.

 

[FightTheFuture]

Quote from listedguru:

Yesterday they said it would raise 10B now it's 55B Euro's?


"The commission adopted the proposals in Strasbourg last night. The tax is expected to raise around €55bn annually and the EC says the revenue will be wholly or partly used as a resource for the EU Budget, which would replace certain existing resources paid out of national budgets."

I really want to read the fine print on this proposal.

-Guru

Financial Transaction Tax: It's a dynamic, elastic, plastic-fantastic, living tax that is continually edited and updated in response to negative public reactions by a powerful, limited group that answers to no one.

 

[sheda]

We need to complete our monetary union with an economic union. It was an illusion to think that we could have a common currency and single market with national approaches to economic and budgetary policy. Let’s avoid another illusion that we could have a common currency and single market with an inter-governmental approach.

His comments coupling the euro with the single market in terms of removing national vetoes over economic policy will alarm Britain.
-----------------------------

However, leaders in Berlin are likely to welcome Mr. Barroso’s call for a change in the euro zone treaty to remove national vetoes that prevent nations THAT WANT to proceed with closer integration from doing so.

Other governments will be wary. Such a treaty change would require ratification by member states and might trigger a referendum in some.

http://www.telegraph.co.uk/finance/...arroso-urges-deeper-economic-integration.html

 

[fortress_keeper]

You can find the details of todays manifesto here:

http://ec.europa.eu/taxation_customs/taxation/other_taxes/financial_sector/index_en.htm

Note the FAQ section and the whole 30 page proposal. Enjoy.

 

[TraDaToR]

In the GFS News article : "The draft directive reads: "Where the establishments concerned are located in the territory of a state which is not part of the Union the transaction is not subject to FTT in the EU, unless one of the parties to transaction is established in the EU in which case the third-country financial institution will also be deemed to be established and the transaction becomes taxable in the member state concerned. "

Translation : If it is adopted, the only people who will be able to make markets in the EU, or more generally to make money on the european markets, will be foreigners trading among themselves or an euro counterpart( which will pay the whole tax ), so on top of reducing Euro GDP and increasing the risk of illiquidity in crisis, they are also annihilating all the current corporate and income taxes they receive from EU trading firms.

"La cerise sur le gateau". "Champions du monde".

 

[tomdavis]

It's good to know that if someone in Toronto does business with someone in Hong Kong the EU may not decide to tax it. What a relief!

Quote from TraDaToR:

In the GFS News article : "The draft directive reads: "Where the establishments concerned are located in the territory of a state which is not part of the Union the transaction is not subject to FTT in the EU, unless one of the parties to transaction is established in the EU in which case the third-country financial institution will also be deemed to be established and the transaction becomes taxable in the member state concerned. "

Translation : If it is adopted, the only people who will be able to make markets in the EU, or more generally to make money on the european markets, will be foreigners trading among themselves or an euro counterpart( which will pay the whole tax ), so on top of reducing Euro GDP and increasing the risk of illiquidity in crisis, they are also annihilating all the current corporate and income taxes they receive from EU trading firms.

"La cerise sur le gateau". "Champions du monde".

 

[JamesL]

I see a whole new market for tax accountants and attorneys going forward.