1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
I think I remember reading in Defazio's bill that it would be enacted 180 days after the law is passed. I don't think this tax is going to happen though...
-Guru
Really? Thanks for pointing that out I didnt get that when I read it. Thats pretty crazy, maybe the banks wont give big bonues then. Your right I just found a better article that explains it: Her is an excerpt, it will be interesting to see which way banks choose.
Dec. 10 (Bloomberg) -- British Chancellor of the Exchequer Alistair Darlingâs plan to levy a 50 percent tax on bonuses will make banks choose between punishing shareholders or employees.
Darling yesterday imposed the tax, to be paid by all banks operating in the U.K., on bonuses they pay employees until April 5. The measure, which the Treasury says will raise more than 550 million pounds ($890 million), will affect about 20,000 people.
Banks will have to decide whether to maintain payments to employees, allowing the additional tax expense to boost the cost of compensation and reduce profits for shareholders, or to protect profits by slashing bonuses. In some cases, firms may have to pay out bonuses because the terms have already been agreed with staff, said Jo Keddie, an employment lawyer at London-based Dawsons LLP.
âItâs a poison pill,â Keddie said in a telephone interview. âEither shareholders are going to take home less, or banks are going to have to punish their employees who have done very well,â she said. âItâs potentially shareholders that are going to lose out because many of the bonuses have already been agreed.â
Did you notice? They aren't weighing the Tobin against other type of levies. I find it really positive.
However, I don't like the way things are going: global rules, global tax...We need to stop this, not as endangered workers like we were in front of the Tobin tax, but as world citizens. No big brother in anything please.
I did think Germany was against the transaction tax but after reading this it seems Merkel was still ok with a transaction tax. Any Germans here care to weigh in?
http://www.nytimes.com/reuters/2009/12/10/business/business-uk-germany-bonuses.html
http://www.nytimes.com/reuters/2009/12/10/business/business-uk-germany-bonuses.html
Yikes that doesn't sound good. So many mixed signals coming from everywhere. Let's just hope the US hold's it's ground and doesn't cave into int'l pressure. Hopefully Brown doesn't get anything done and get's booted out of office and the IMF issues a report against the tax...
-Guru
The new Trio of Germany, France and the UK are discussing the limits right now which are currently at 0.005% to 0.05% per side.
They have held discussions with Denmark (hosting the Copenhagen summit and Sweden, holding the EU chairmanship - though both oppose it currently).
However, they have Italy, Holland, Belgium, Spain, Portugal and some Eastern European countries on their side.
It will be proposed in Copenhagen next week, though if no consensus, it will await the G20 reports in April.
The UK treasury is due to release a report tomorrow on a transaction tax.
Quote from NielsenDK:
The new Trio of Germany, France and the UK are discussing the limits right now which are currently at 0.005% to 0.05% per side.
They have held discussions with Denmark (hosting the Copenhagen summit and Sweden, holding the EU chairmanship - though both oppose it currently).
However, they have Italy, Holland, Belgium, Spain, Portugal and some Eastern European countries on their side.
It will be proposed in Copenhagen next week, though if no consensus, it will await the G20 reports in April.
The UK treasury is due to release a report tomorrow on a transaction tax.
I was releived to hear of Germany against the tax last week but now it is a little scary. I think the US doesnt care about most countries, but as long as they have UK FRANCE and Germany along for the ride with the tax thats all they need. They keep saying globally and the preface that with saying major countries and financial hubs.
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The key point here is that the market making function will have to be exempt....or else no market place...
Who does this support ? The old transaction EURO establishment that do not want to invite more efficiency such as a BATS exchange that threatens their livlihood....
What should be of real interest is that the banks will not pay a dime of the new transaction tax....because they will be the ones making the markets....
Thus RETAIL only will pay this tax....
So what does this suggest about the politics ?
The Banks win big time.....