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

[TraDaToR]

http://www.bloomberg.com/news/2012-...ce-to-take-effect-in-august-sarkozy-says.html

French banks' shares are getting killed today thanks to Sarko.

 

[FightTheFuture]

The Tobin Tax Has Been Tried Before, And It Was A Total Disaster

"There is massive theoretical as well as actual real life evidence that financial transaction taxes will backfire, but that never stops politicians hell-bent on plowing ahead with "it's different this time" horrendous ideas."

http://www.businessinsider.com/four-reasons-why-the-tobin-tax-is-a-bad-idea-2012-1

 

[justrading]

http://www.bbc.co.uk/news/world-europe-16783520

Quote: Mr Sarkozy faces a presidential election in April, but is currently trailing in the opinion polls behind his Socialist rival, Francois Hollande.

 

[sheda]

the tax will be paid by the people who buy a financial product, not by those who sell it

France showing the banks then eh?

The law affects three different types of products: stocks, derivatives (including the famous' credit default swaps ", CDS) and high frequency trading-that is to say execution in microseconds of financial transactions by the only way of computing

HFT is a financial product?

 

[Rantany]

BOX-France-Details of the tax on financial transactions

(google translation)

BOX-France-Details of the tax on financial transactions

PARIS, Jan. 30 (Reuters) - Here are the details of the future tax on financial transactions given Monday by the Prime Minister:

* The tax on all transfers of shares of listed companies in Paris, regardless of the location of the buyer or seller and place of the transaction (regulated markets, alternative platforms, transaction-counter).

* The tax rate would be 0.1%, identical to that provided in the draft EU directive.

* Several exemptions are provided:

- Issues of securities

- Activities not speculative in nature (activities required to market)

- Operations in the groups

- The lending of securities

* A specific tax will:

- Transactions on sovereign credit default swaps sold bare.

- The operations of high-frequency trading

* The measure will come into force on 1 August 2012 and will generate 1 billion euros for a full year.

 

[slumdog]

* The tax on all transfers of shares of listed companies in Paris, regardless of the location of the buyer or seller and place of the transaction (regulated markets, alternative platforms, transaction-counter).

* The tax rate would be 0.1%, identical to that provided in the draft EU directive.

* Several exemptions are provided:

- Issues of securities

- Activities not speculative in nature (activities required to market)

Sounds like a stamp tax at 0.1% rate with market makers exempt.
Will it apply both to buying and selling, so 0.2% in total, or only when buying?
Either way it will be much less than the UK stamp duty which is 0.5%.

Regarding credit default swaps and other derivatives, these can be written and transacted anywhere in the world, going to be hard for the french to raise much revenue from them?

 

[Rantany]

I guess both ('identical to that provided in the draft EU directive'). But i doubt if all this really raises 1 billion euros for a full year.



http://www.dailymail.co.uk/debate/a...ons-won-t-halt-decline.html?ito=feeds-newsxml

Sarkozy and I have one thing in common: neither of us will be elected President of France in April.

 

[slumdog]

Quote from Rantany:

I guess both ('identical to that provided in the draft EU directive'). But i doubt if all this really raises 1 billion euros for a full year.

The uk stamp duty raises almost 4 billion euro.. so the french raising a billion isn't unrealistic if they do it properly.

However there will be tax lost elsewhere (capital gains, corporation tax etc) so it is going to be hard to say what the actual net amount raised really is.

 

[Rantany]

Quote from slumdog:

The uk stamp duty raises almost 4 billion euro.. so the french raising a billion isn't unrealistic if they do it properly.

However there will be tax lost elsewhere so it is going to be hard to say what the actual net amount raised really is.

Yes you're right, i forgot about that.


Oh no, not again:

Schulz: EP supports financial transaction tax, euro bonds

BRUSSELS, Jan. 30 (Xinhua) -- The European Parliament (EP) President Martin Schulz on Monday said that the legislature was in favor of financial transaction tax and euro bonds.

"2012 is the year in which we must find a way out of the crisis. The European Parliament intends to play a constructive, committed role in that process," Schulz said when addressing a news conference at an EU informal summit.

He said an overwhelming majority of the EP members called for the introduction of financial transaction tax.

The people who caused the crisis must not be allowed to walk away with billions of euros of bonuses lining their pockets, while the taxpayers pay the bill for their disastrous gambles, he said, adding that it was a question of fairness.

 

[Stok]

Quote from slumdog:

Sounds like a stamp tax at 0.1% rate with market makers exempt.
Will it apply both to buying and selling, so 0.2% in total, or only when buying?
Either way it will be much less than the UK stamp duty which is 0.5%.

Funny how MM's are exempt...banks/trading firms will make out like bandits....these socialists sure know how to stick it to the big bad banks!! Joe 6-pack will be paying this tax.