1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
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Very true. Though I disagree with the thread being closed bit.
Even exchanges, many of which are now publicly traded companies (something which they weren't when we last saw this tax), would suffer immensely along with their shareholders.
But let's imagine that it were possible for something of this sort to pass. It would have to be drafted with such exemptions, all things considered, that only the most misinformed would be liable to pay the tax.
Canada's finance minister Jim Flaherty today:
http://www.iii.co.uk/news/?type=afxnews&articleid=7795679&action=article
[...] However, he appeared doubtful that a clear consensus on regulatory reform would appear by the time of joint G8 and G20 meetings in Toronto at the end of June.
"I think it will be a work in progress quite frankly, but we will know better after we have the April meetings in Washington," he told Reuters, referring to annual meetings of annual spring meetings of the International Monetary Fund and World Bank.
"I don't know if we'll get there in June, but everyone agrees that leverage rules are necessary. And I would hope that we'd get away from suggestions of some kinds of Tobin tax or something along those themes as that's a non-starter for us."
http://www.iii.co.uk/news/?type=afxnews&articleid=7795679&action=article
[...] However, he appeared doubtful that a clear consensus on regulatory reform would appear by the time of joint G8 and G20 meetings in Toronto at the end of June.
"I think it will be a work in progress quite frankly, but we will know better after we have the April meetings in Washington," he told Reuters, referring to annual meetings of annual spring meetings of the International Monetary Fund and World Bank.
"I don't know if we'll get there in June, but everyone agrees that leverage rules are necessary. And I would hope that we'd get away from suggestions of some kinds of Tobin tax or something along those themes as that's a non-starter for us."
Looks like this topic is being more and more talked about throughout the trading community. Like I said I don't ever see this happening but it is an interesting topic to discuss http://www.tradersterminal.com/showthread.php?t=160
Canada is just one of several APEC member nations to have publicly clarified they are not doing any version whatsoever of a transactions tax.
APEC group representation recently expressed disinterest.
Although India unsuccessfully applied for APEC membership, they are dismantling their version of a transactions tax, declaring against it. India actively, successfully, pursues developed world jobs, striding towards economic power. They will welcome any opportunity to grow their financial centre.
Developed world businesses are highly exposed to offshoring. Their financial institutions would quickly disappear if the few loudest tax-obsessed decided to go it alone on any shape or form tax.
Asian nations will not comply with outsiders who loudly trumpet forceful "wants". Outsider interference in Asian politics is culturally loathed. Asian nations do not welcome megaphone pressure.
If anyone thinks that Chinese Hong Kong would meekly follow UK/Euro orders, diminishing their competitive business position, they should think again.
There will be some embarrassed red faces when practicality and common sense end the discussion. History has a long-term memory.
APEC group representation recently expressed disinterest.
Although India unsuccessfully applied for APEC membership, they are dismantling their version of a transactions tax, declaring against it. India actively, successfully, pursues developed world jobs, striding towards economic power. They will welcome any opportunity to grow their financial centre.
Developed world businesses are highly exposed to offshoring. Their financial institutions would quickly disappear if the few loudest tax-obsessed decided to go it alone on any shape or form tax.
Asian nations will not comply with outsiders who loudly trumpet forceful "wants". Outsider interference in Asian politics is culturally loathed. Asian nations do not welcome megaphone pressure.
If anyone thinks that Chinese Hong Kong would meekly follow UK/Euro orders, diminishing their competitive business position, they should think again.
There will be some embarrassed red faces when practicality and common sense end the discussion. History has a long-term memory.
Welcome news!
IMF's Strauss-Kahn casts doubt on transaction tax
http://www.forexyard.com/en/news/IMFs-Strauss-Kahn-casts-doubt-on-transaction-tax-2010-03-17T122955Z
BRUSSELS, March 17 (Reuters) - A tax on financial transactions to help pay for bailouts of failed banks would be difficult to devise and easy to avoid, the International Monetary Fund's managing director said on Wednesday.
Dominique Strauss-Kahn will present the G20 group of leading countries his proposals next month on how to make banks rather than taxpayers pay for bailouts.
He is mulling different ways, such as a tax on transactions and a levy on a bank's balance sheet.
Germany and France have pushed for a "Tobin" style tax on transactions, named after U.S. economist James Tobin who proposed in the 1970s a way to raise money for developing countries and dampen volatility in foreign exchange markets.
Strauss-Kahn was initially sceptical of a transaction tax when the IMF was tasked last November to consider one.
Several months on and just before he delivers his report, that scepticism remains, appearing to rule it out.
"I have been a big fan of the transaction tax in the 1970s but since then a lot of things have changed. What has changed is the technicality of the financial industry," Strauss-Kahn told the European Parliament.
"What is obvious is it becomes more and more easy to build derivatives to avoid a transaction tax," he added.
"In taxation the simpler the better. It's not that obvious that the easiest way is to build something which is maybe difficult to create and rather easy to avoid.
The question reamined open, he said.
"Certainly we will provide answers, there is room for some financial sector tax. What kind of tax we will have to wait and see," Strauss-Kahn said.
A idea of a transaction tax is seen as effectively dead already as the United States and Canada have said they will not introduce one, giving banks an escapte route.
British Prime Minister Gordon Brown said last month the idea of a levy on banks was gaining ground after he diluted his initial support for a transaction tax last year.
This leaves open some form of levy on bank balance sheets, a step the United States is already planning, but only to recoup rescue costs it has made so far.
Strauss-Kahn said leaders need to be clear on what was the objective -- to finance development, rescue banks, or both.
"You can't do both with the same money. The question is what do you really want? A bigger levy? The money can only be used once," Strauss-Kahn said.
IMF's Strauss-Kahn casts doubt on transaction tax
http://www.forexyard.com/en/news/IMFs-Strauss-Kahn-casts-doubt-on-transaction-tax-2010-03-17T122955Z
BRUSSELS, March 17 (Reuters) - A tax on financial transactions to help pay for bailouts of failed banks would be difficult to devise and easy to avoid, the International Monetary Fund's managing director said on Wednesday.
Dominique Strauss-Kahn will present the G20 group of leading countries his proposals next month on how to make banks rather than taxpayers pay for bailouts.
He is mulling different ways, such as a tax on transactions and a levy on a bank's balance sheet.
Germany and France have pushed for a "Tobin" style tax on transactions, named after U.S. economist James Tobin who proposed in the 1970s a way to raise money for developing countries and dampen volatility in foreign exchange markets.
Strauss-Kahn was initially sceptical of a transaction tax when the IMF was tasked last November to consider one.
Several months on and just before he delivers his report, that scepticism remains, appearing to rule it out.
"I have been a big fan of the transaction tax in the 1970s but since then a lot of things have changed. What has changed is the technicality of the financial industry," Strauss-Kahn told the European Parliament.
"What is obvious is it becomes more and more easy to build derivatives to avoid a transaction tax," he added.
"In taxation the simpler the better. It's not that obvious that the easiest way is to build something which is maybe difficult to create and rather easy to avoid.
The question reamined open, he said.
"Certainly we will provide answers, there is room for some financial sector tax. What kind of tax we will have to wait and see," Strauss-Kahn said.
A idea of a transaction tax is seen as effectively dead already as the United States and Canada have said they will not introduce one, giving banks an escapte route.
British Prime Minister Gordon Brown said last month the idea of a levy on banks was gaining ground after he diluted his initial support for a transaction tax last year.
This leaves open some form of levy on bank balance sheets, a step the United States is already planning, but only to recoup rescue costs it has made so far.
Strauss-Kahn said leaders need to be clear on what was the objective -- to finance development, rescue banks, or both.
"You can't do both with the same money. The question is what do you really want? A bigger levy? The money can only be used once," Strauss-Kahn said.