No pull for Stiglitz, he has been anit IMF and anti World Bank since he was cheif economist there. He was push to be fired by Larry Summers and the FED for critiscing the world bank and IMF policies. Read more about him, while he is an economist and Nobel winner, he speaks to the media alot becuase they are the only ones who listen. The governments do not anymore after he was fired from World Bank. He is like a Dean Baker guy now
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
IMF already ruled out a transaction tax which is good. We might get higher cost here and there for some monthly fees if they do levy banks like they are talking about. I would rather have that where they charge a bank a levy on assets or whatever like a bank, and see how it would flow to us. Either way it would be much better and cheaper then having a transaction tax. But again all this is premature, first the IMF has to agree on something and present it to the g20 and June, and the US has to approove or not approve since we can veto anything at the IMF.
rsikit,
Thanks for all your insight into this situation. It's of much relief that the IMF seems to be ruling out a direct 'tobin tax.' Plus like you say everyone would have to agree on something and have it not get vetoed, etc...
I think we'll be okay
Now if the afl cio will just go away with their lame proposal I can sleep at night
-Guru
If this were to have any traction here, it would have been done already the million times it was put in by defazio, and talked about by our governement as well but none so far. Go ahead and find old articles during the Asian financial crisis in the late 90s same bigtime talk about the tobin tax then as well. For us its only a problem if someone in the administration talks about it someone who can really make law here in our country. Not the IMF or any other world type body with no authority. Goto wikipedia and read up on Stiglitz and why he was fired from the world bank and by whom!
I think for IMF to ratify something it takes an 85% majority and the US has an 16.77% share of voting. So that is all we need Plus even if the IMF ratifies something its still moer of a guideline then law, laws are passed by congress so it would still have to go thru them! No worries Guru, there is always something. London has the stamp tax, yet you can trade anything almost income tax free and free of transaction taxes called CFD'S on stock futures and currency. Its there way around the stamp tax. And its regulated so someone always thinks of something. Before we put in the online gaming law I traded these cfd's thru London when I was here in teh US and it was great. It was a grey area then techinally not illegal but now they stopped the funding of these accounts over seas so if something happens here like that I am sure the innovation will follow.
Plus even if the IMF ratifies something its still moer of a guideline then law, laws are passed by congress so it would still have to go thru them! No worries Guru, there is always something. London has the stamp tax, yet you can trade anything almost income tax free and free of transaction taxes called CFD'S on stock futures and currency. Its there way around the stamp tax. And its regulated so someone always thinks of something. Before we put in the online gaming law I traded these cfd's thru London when I was here in teh US and it was great. It was a grey area then techinally not illegal but now they stopped the funding of these accounts over seas so if something happens here like that I am sure the innovation will follow.Financial Transaction Tax conference set for October 22 in Paris?
It mentions the Germans being for this but Merkel said she was against it correct? It also mentions 1% and 0.005%...
"In this light, we now understand that a conference on Financial Transaction Taxes (FTTs) is now planned for October 22 in Paris, as the set-up point for a new task force on FTTs. The task force is expected to meet three or four times between now and June 2010, at ministerial or official level France's Foreign and Finance Ministers agree on the principle of a tax too (as do the Germans), and many others.
The discussions in Paris are currently envisaged on two main kinds of taxes: first, regulatory taxes (Tobin taxes, as advocated by Lord Turner), aimed at curbing "socially useless" (or, more accurately, harmful) speculative activity, of the order of 1%; and second, financial taxes, at much lower rates (e.g. 0.005%) aimed at financing development.
The task force is expected to take input from civil society, banks, and so on."
http://taxjustice.blogspot.com/2009/10/financial-transactions-taxes-new-task.html
-Guru
It mentions the Germans being for this but Merkel said she was against it correct? It also mentions 1% and 0.005%...
"In this light, we now understand that a conference on Financial Transaction Taxes (FTTs) is now planned for October 22 in Paris, as the set-up point for a new task force on FTTs. The task force is expected to meet three or four times between now and June 2010, at ministerial or official level France's Foreign and Finance Ministers agree on the principle of a tax too (as do the Germans), and many others.
The discussions in Paris are currently envisaged on two main kinds of taxes: first, regulatory taxes (Tobin taxes, as advocated by Lord Turner), aimed at curbing "socially useless" (or, more accurately, harmful) speculative activity, of the order of 1%; and second, financial taxes, at much lower rates (e.g. 0.005%) aimed at financing development.
The task force is expected to take input from civil society, banks, and so on."
http://taxjustice.blogspot.com/2009/10/financial-transactions-taxes-new-task.html
-Guru
That seems like its just for Europe or France for themselves, where some of Euroope will not want one. Let the French do what they want its not our government over there, plus if they do this alone more business for the US. Our government doesnt see it as socially useless. Sarkozy as wanted this and let him take it. IMF isnt there and already poured cold water on the tax in the terms of Tobin type.
IMO, it is not worth stressing about right now as the stock market rallies. just wait, till mid 2010, or whenever the market turns over again, and all HECK breaksout again. we will be hearing about uptick, short selling, transaction tax daily, as the blame game starts all over again.
Guru,
Also watch out for the spin machines of bias. You see all teh articles that say bankers to get taxed in new IMF meeting, but when you read it it was not for transaction taxes just an insurance type tax. But they spun it the way of traders getting taxed. Also tax justice is a pro transaction tax blog so they are spinning what they want out of it. 1% is absoulutly ridiculous
Just go by what the IMF says since they are the ones looking into it.