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1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Yes, very pink panther. lol.Financial Transaction Tax Could Be Hard Sell At G-20:
http://online.wsj.com/article/BT-CO-20100621-702034.html?mod=WSJ_World_MIDDLEHeadlinesAmericas
Privately, French officials agree the financial transaction tax is likely to prove a tough sell. Even Sarkozy Thursday acknowledged all EU members weren't "absolutely enthusiastic about it."
"We know it's unlikely to fly at the G-20, but France has always been keen to find innovative ways to fund development or climate change and we are prepared to work with Germany" on the financial transaction tax, another French official said. The official stressed the key priority in Toronto is to muster support for plans to establish a global bank levy.
The U.S. hasn't commented on the plan so far, but rejected the idea when it was floated by the then U.K. Prime Minister Gordon Brown at a G-20 meeting in Scotland. An official from the U.S. Treasury said Friday that Washington's position on the matter hasn't changed.
A person close to the IMF said the report to be submitted to G-20 leaders next week will mention the idea of a financial transaction tax, while making clear it isn't the best way to make the banking sector cover the cost of future crises or to limit systemic vulnerabilities. The report will also point out the concern that the cost of such a tax would be passed on to clients, and that it doesn't necessarily target the riskiest types of trades.
"You can argue that it's tricky to de-localize banks as you have to move staff, but there is nothing easier than de-localizing financial transactions... All you have to do is move an electronic trading platform," Dominique Barbet, senior economist at BNP Paribas said. It is a particularly easy thing to do on the foreign exchange market, which is the most global, he pointed out.
If a transaction tax were applied on certain European equities markets, for instance, trades would move to a neighboring marketplace, which would eventually result in liquidity drying up.
"In the long run it is an inefficient tool to fight speculation, as it leads speculation to move to even darker corners of the financial system," Barbet said.
-Guru
http://online.wsj.com/article/BT-CO-20100621-702034.html?mod=WSJ_World_MIDDLEHeadlinesAmericas
Privately, French officials agree the financial transaction tax is likely to prove a tough sell. Even Sarkozy Thursday acknowledged all EU members weren't "absolutely enthusiastic about it."
"We know it's unlikely to fly at the G-20, but France has always been keen to find innovative ways to fund development or climate change and we are prepared to work with Germany" on the financial transaction tax, another French official said. The official stressed the key priority in Toronto is to muster support for plans to establish a global bank levy.
The U.S. hasn't commented on the plan so far, but rejected the idea when it was floated by the then U.K. Prime Minister Gordon Brown at a G-20 meeting in Scotland. An official from the U.S. Treasury said Friday that Washington's position on the matter hasn't changed.
A person close to the IMF said the report to be submitted to G-20 leaders next week will mention the idea of a financial transaction tax, while making clear it isn't the best way to make the banking sector cover the cost of future crises or to limit systemic vulnerabilities. The report will also point out the concern that the cost of such a tax would be passed on to clients, and that it doesn't necessarily target the riskiest types of trades.
"You can argue that it's tricky to de-localize banks as you have to move staff, but there is nothing easier than de-localizing financial transactions... All you have to do is move an electronic trading platform," Dominique Barbet, senior economist at BNP Paribas said. It is a particularly easy thing to do on the foreign exchange market, which is the most global, he pointed out.
If a transaction tax were applied on certain European equities markets, for instance, trades would move to a neighboring marketplace, which would eventually result in liquidity drying up.
"In the long run it is an inefficient tool to fight speculation, as it leads speculation to move to even darker corners of the financial system," Barbet said.
-Guru
Wall Street Whispers - The Tax Debate
It's been clear for quite awhile that reform measures will limit Wall Street's ability to make money. But now another issue has come to the fore: Wall Street's ability to keep the money it makes after the tax man is through.
Banks have already been hit by the U.K. bonus tax, which is reportedly sapping $2 billion from the U.S. alone. But now murmurs are increasing about a potential "transaction tax" that has support in Europe and left-leaning U.S. policy makers.
http://www.thestreet.com/story/10787827/1/wall-street-whispers--the-tax-debate.html?cm_ven=GOOGLEFI
It's been clear for quite awhile that reform measures will limit Wall Street's ability to make money. But now another issue has come to the fore: Wall Street's ability to keep the money it makes after the tax man is through.
Banks have already been hit by the U.K. bonus tax, which is reportedly sapping $2 billion from the U.S. alone. But now murmurs are increasing about a potential "transaction tax" that has support in Europe and left-leaning U.S. policy makers.
http://www.thestreet.com/story/10787827/1/wall-street-whispers--the-tax-debate.html?cm_ven=GOOGLEFI
Quote from seasideheights:
Wall Street Whispers - The Tax Debate
It's been clear for quite awhile that reform measures will limit Wall Street's ability to make money. But now another issue has come to the fore: Wall Street's ability to keep the money it makes after the tax man is through.
Banks have already been hit by the U.K. bonus tax, which is reportedly sapping $2 billion from the U.S. alone. But now murmurs are increasing about a potential "transaction tax" that has support in Europe and left-leaning U.S. policy makers.
http://www.thestreet.com/story/10787827/1/wall-street-whispers--the-tax-debate.html?cm_ven=GOOGLEFI
The good news is the murmurs they make reference to come from a nyt blog post from last week. The blog post was basically a rehash of the same old garbage IMHO.
Let's just hope the G20 puts the smack down on both Germany and France (as I'm sure they will).
I know Obama is going to attend the G20 meeting in Toronto. I wonder what his response would be if he were asked about the FTT? Hopefully he would either crush it right then and there or say something about following the advice of Geither and the Treasury dept.
-Guru
G20 leaders to bury bank tax and focus on capital
(Reuters) - Group of 20 countries will formally bury plans for a single global bank tax next week and focus on advancing tough new capital rules and ways of winding up failing institutions without taxpayer help.
G20 finance ministers decided earlier this month in South Korea to give up on a common levy, and their leaders will instead agree that the financial sector should pay for its own bailouts in future, leaving countries to chose how.
http://www.reuters.com/article/idUSTRE65H2WJ20100618
(Reuters) - Group of 20 countries will formally bury plans for a single global bank tax next week and focus on advancing tough new capital rules and ways of winding up failing institutions without taxpayer help.
G20 finance ministers decided earlier this month in South Korea to give up on a common levy, and their leaders will instead agree that the financial sector should pay for its own bailouts in future, leaving countries to chose how.
http://www.reuters.com/article/idUSTRE65H2WJ20100618
Obama can't talk up new taxes too much at the G-20 as there is voter-fury to pay for it in the US. Just look at that failed tax-extenders bill in the Senate (on my Forbes blog). Populist forces are moving from get the banks-only to austerity and get BP._
Geithner was clear that an FTT falls unduly on retail middle-class investors. So it's political-suicide to push an American FTT at the G-20. The American team will simply say 'glad you are coming around to our bank liability tax idea.'
The G-20 focus should and most likely will be preventing meltdown 2.0, contagion, liquidity from central banks, stress tests and avoiding taxpayer bailouts. America will use it's voice to sell American-style rescue versus German austerity. All will reinforce capital requirements and risk management.
They will continue to punt drastic reform down the road and say they are in cooperation applying separate area solutions in concert._
No way is FTT going to happen for the G-20 in Toronto. It still may happen for Germany's sphere of influence, the eurozone.
Sent from my iPhone.
Geithner was clear that an FTT falls unduly on retail middle-class investors. So it's political-suicide to push an American FTT at the G-20. The American team will simply say 'glad you are coming around to our bank liability tax idea.'
The G-20 focus should and most likely will be preventing meltdown 2.0, contagion, liquidity from central banks, stress tests and avoiding taxpayer bailouts. America will use it's voice to sell American-style rescue versus German austerity. All will reinforce capital requirements and risk management.
They will continue to punt drastic reform down the road and say they are in cooperation applying separate area solutions in concert._
No way is FTT going to happen for the G-20 in Toronto. It still may happen for Germany's sphere of influence, the eurozone.
Sent from my iPhone.
White House Budget Director Orzag is leaving.
December will bring us the results of the Deficit Reduction Committee.
We'll have to look into the background of the next Budget Director to see if he'll be on our side.
December will bring us the results of the Deficit Reduction Committee.
We'll have to look into the background of the next Budget Director to see if he'll be on our side.
Bank Levy, Transaction Tax Test of G-20 Unity: German Official
http://www.businessweek.com/news/20...n-tax-test-of-g-20-unity-german-official.html
The G-20 is split on the twin issues of a bank levy and a financial transaction tax, the official said in Berlin today on condition of anonymity. Germany, France and other European Union state will push the levies, and Germany will seek an EU-wide solution if the G-20 fails to agree, the official said.
What are these German's smoking? I don't think the Transaction Tax will find any G20 support outside of Germany and France.
-Guru
http://www.businessweek.com/news/20...n-tax-test-of-g-20-unity-german-official.html
The G-20 is split on the twin issues of a bank levy and a financial transaction tax, the official said in Berlin today on condition of anonymity. Germany, France and other European Union state will push the levies, and Germany will seek an EU-wide solution if the G-20 fails to agree, the official said.
What are these German's smoking? I don't think the Transaction Tax will find any G20 support outside of Germany and France.
-Guru
Quote from listedguru:
Bank Levy, Transaction Tax Test of G-20 Unity: German Official
http://www.businessweek.com/news/20...n-tax-test-of-g-20-unity-german-official.html
The G-20 is split on the twin issues of a bank levy and a financial transaction tax, the official said in Berlin today on condition of anonymity. Germany, France and other European Union state will push the levies, and Germany will seek an EU-wide solution if the G-20 fails to agree, the official said.
What are these German's smoking? I don't think the Transaction Tax will find any G20 support outside of Germany and France.
-Guru
He may have been referring to bank levies rather than the FTT. France , Germany, and the UK announced they are going to coordinate bank levies today. I agree the FTT has no chance outside the Eurozone and even there I think it's a long shot.
http://uk.reuters.com/article/idUKLNE65L02Q20100622
Following is the full statement issued on Tuesday by the French, British and German governments:
In light of agreement in the G20 that the financial sector should make a fair and substantial contribution towards paying for any burdens associated with government interventions to repair the banking system or fund resolution in a financial crisis, and the valuable work undertaken by the IMF in response to this (and the conclusions of the European Council on 17th June), the Governments of France, the United Kingdom and Germany propose to introduce bank levies based on banks' balance sheets.
The United Kingdom bank tax is announced today, Tuesday 22nd June in the Budget. France will present the details of its bank tax in the coming Budget.
Germany announced a framework for a national bank levy at the end of March and will present draft legislation in the Cabinet in summer. All three levies will aim to ensure that banks make a fair contribution to reflect the risks they pose to the financial system and wider economy, and to encourage banks to adjust their balance sheets to reduce this risk. The specific design of each may differ to reflect our different domestic circumstances and tax systems, but the level of the levy will take into consideration the need to ensure a level playing field.
The French, UK and German Governments are committed to the full implementation of the ambitious G20 financial sector reform agenda and look forward to discussing these proposals further with international partners at the G20 Summit in Toronto on 24th June.
From The New York Times: France, Germany and U.K. Support Bank Tax
The three largest European countries solidified their commitment to direct bank taxes in the build-up to a G-20 summit meeting.
http://nyti.ms/a1NthM
Get The New York Times on your iPhone for free by visiting http://itunes.com/apps/nytimes
we are on par. Big power EU countries are promising bank levies on balance sheets in line - but much lower - then Obama.
No final enactments until later this year. Bank or financial taxes are settled before g-20. Canada can just repeat their banks did not err and they don't need this tax.
Tax bills are easier to talk up and harder to pass. Any Obama tax will be challenged now. Open hunting season on banks hopefully is ending soon.
G-20 will focus on spending versus austerity and China Yuan depegging is the biggest news going into the meetings. That is a coordinated success for G-20 pressure.
I don't feel the tax heat at this G-20. Next potential threat is Dems having an unexpected big win in the midterms and Obama going to tax increases 2.0. If republicans gain power we should be safe.
Sent from my iPhone.
The three largest European countries solidified their commitment to direct bank taxes in the build-up to a G-20 summit meeting.
http://nyti.ms/a1NthM
Get The New York Times on your iPhone for free by visiting http://itunes.com/apps/nytimes
we are on par. Big power EU countries are promising bank levies on balance sheets in line - but much lower - then Obama.
No final enactments until later this year. Bank or financial taxes are settled before g-20. Canada can just repeat their banks did not err and they don't need this tax.
Tax bills are easier to talk up and harder to pass. Any Obama tax will be challenged now. Open hunting season on banks hopefully is ending soon.
G-20 will focus on spending versus austerity and China Yuan depegging is the biggest news going into the meetings. That is a coordinated success for G-20 pressure.
I don't feel the tax heat at this G-20. Next potential threat is Dems having an unexpected big win in the midterms and Obama going to tax increases 2.0. If republicans gain power we should be safe.
Sent from my iPhone.