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

Quote from seasideheights:

At the G20 meeting in November 2009, Geithner firmly quashed the idea of a global financial transaction tax and has managed to keep the subject off the international table, though there are signs from Europe that the US may now be ready to discuss this again.


http://www.gfsnews.com/article/818/1/10__Timothy_Geithner__US_Treasury_Secretary
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Signs from Europe that the US is ready to discuss a FTT again (LOL). All of this from Semeta who claims that his US counterparts showed a readiness to dicuss this once they see the results of a forthcoming study. Maybe he spoke with Defazio? I am so sick and tired of these jerks trying to dictate US policy it makes me sick.

-Guru
 
Quote from seasideheights:

At the G20 meeting in November 2009, Geithner firmly quashed the idea of a global financial transaction tax and has managed to keep the subject off the international table, though there are signs from Europe that the US may now be ready to discuss this again.


http://www.gfsnews.com/article/818/1/10__Timothy_Geithner__US_Treasury_Secretary
More...

"there are signs from Europe" -- that's how ECON chief planned on recent manipulative "I found readiness" words being wildly interpreted and spread via media.

http://www.ft.com/cms/s/0/1dd55786-1f6a-11e0-87ca-00144feab49a.html#axzz1B2szyWOW

I don't believe any sovereign entity would ever sign away autonomous regulation of their revenue-earning financial sector activities to any proposed overarching collection agent or new regulatory authority. G20 countries are unlikely to surrender to persistent European pressure, or anyone else's for that matter. New century off-shore competition is way too threatening.
One day the big economies are falsely publicly pandering to each other, the next they will be fighting for higher ground. Together today, enemies tomorrow.

Dangerous, dangerous territory.
 
Good Article. It shows there is nothing new under the sun in fact...But this part really made me want to puke. Politicians really know nothing:

"In his speech, the Austrian economist Stephan Schulmeister pointed out that high frequency trading, which would dominate modern financial markets, had resulted in huge long-term price increases. This would result in the fact that investors were only looking for short-term gains, for example via the famous Credit Default Swaps, whereby they would fuel financial crises. This opportunity was just too profitable for Goldman Sachs for example, to not use this option as long as the rules of the game would allow this. "

Huge long term price increase? On what? Let me guess... Agriculture and oil ?And huge long term price decrease on stocks you forgot... High Frequency trading on CDS? Yeah for sure...Just go kill yourself , Mr self proclaimed economist...The world is becoming uglier every day the public learn new words like CDS and HFT....
 
Quote from andohmeeta:

http://www.taxationinfonews.com/2011/01/eu-eying-to-instate-financial-transaction-tax/
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"The Commissioner stated that the EC believes a financial transaction tax system is the most promising avenue for a new tax revenue source in the European Union. The meeting was expected to make progress towards deciding the types of transactions which would subject to the new tax, and the liability balance between the parties participant in the selected transactions."

Wow - what happened to waiting for the impact study that the commission is supposed to produce this summer? Sounds to me like their minds are made up. Gee I wonder what flavor of tax the study is going to highlight (LOL)?

I still highly doubt they would ever get the entire EU onboard with a FTT (let alone the G20) so hold all the meetings you want and waste everybody's time:)

And just last week I read quotes from Semeta saying that a FAT tax would be most appropriate in the EU as it's less likely to be passed onto the consumer, etc. This guy changes his mind more than a woman:)

http://www.akeuropa.eu/en/news-full.html?cmp_id=7&news_id=859&vID=37

"Afterwards he repeated what the Commission had already presented in a Communication in autumn: according to its analyses, a Financial Activities Tax is a more promising option than the introduction of a Financial Transaction Tax, as such a tax would fulfil the criteria mentioned above and guarantee stability. This had been confirmed by the IMF and numerous scientific studies. Based on a maximum tax rate of 5 %, calculations indicate that the 27 Member States could generate an income of € 25 billion."

"One would now wait for an impact assessment, which would scrutinise the cumulative impact of regulations, bank levy and taxation on financial institutions."

"Å emeta replied that the introduced instruments would concern completely different taxation based on different objectives. Concerning the taxation of the financial sector, the objective would be to close a tax loophole; the current analyses would indicate that a taxation of financial activities should be preferred over a Financial Transaction Tax. It was for example easier to prevent that the tax from being passed on to the end consumer."

-Guru
 
Per wikipedia on Semeta, he is affiliated with the European Peoples Party, which advocates pan-EU fiscal and monetary policy. As I've predicted for over a year, some in the EU would propose a FTT as a convenient new federal EU tax. Semeta seems to fit this bill.

EU-only FTT won't fly with money center powers like UK, France, Germany and Sweden not conceding financial transactions to Asia and Americas. PIIGS and other EU countries in financial distress may welcome new pan EU bonds to bail them out. They also might consider a FTT to curb short-sellers driving up their borrowing costs and to cover bailout losses too. Bailout EU bonds might open the door to a pan EU FTT.

Will FTT get a fresh look again in DC too? Obama is pushing his 100 billion TARP-recouping bank levy again in his 2012 budget. After inclusion in Obama's 2011 budget, it languished behind health care, Dodd Frank and Bush tax cut extension. With financial markets recovering, and new players on the Presidents team, might some consider the FTT? We can probably count on House Republicans to block FTT since it's a tax increase. I think leaks in DC mention FTT to soften up banks to concede to a bank levy. Same drama from last year. Thumbed on iPhone.
 
EU FTT versus FAT. The main argument against FTT is it falls on consumers (investors). That's a good enough reason to block it in the US, but maybe not in the EU. Many EU countries have VAT taxes (partially a consumption tax) in addition to income taxes, so I am not sure they are truly concerned with consumers (investors). Some in the EU think a FTT tax rate is tiny for buy and hold investors, and they want to put sand in the wheels of speculators.

President Obama wants an annually-assessed tax on non-insured bank balance sheets, call it FBT, and it's less invasive than a FAT. Geithner says FTT is too broad, falling on retail investors and banks will deflect it. So it's FBT or no tax in the US.

Multiple choice in the EU is not bad, it will confuse them all for some time. EU studies and debates take time and before they reach conclusions, leadership changes with rotation and political change. Imagine if we had some states calling for state-based FTT and others were against it, and the decision had to be unilateral.

EU banks are still mired in the PIIGS deficit crisis and it's not wise to impair them at this time with a FAT or FBT. Obama waited for US banks to recover and pay back TARP. FBT is paying back TARP twice.

EU liberal global causes will keep calling for FTT to have banks, financial companies and investors - where the money is - pay to support their liberal causes. They want a save the world global tax and in their minds it should be the broadest tax possible, like a FTT - a tax on money itself. That's still pie in the sky over reach in my view. Thumbed on iPhone.
 
A tax on money itself, lol. Wasnt it the FIRE sector we had to bail out? So corporations paid 300 billion n taxes last year,,the fed had to open up the discount window and lend out 13 trillion to keep em all open for business, about 30 plus years of taxes?
We have road taxes to keep the roads open, we all pay 65 billion pr yr just to the feds for the roads upkeep, we all agree having roads is a fine thing and we pay the taxes for it. Many here want a financial system but not the funds to keep it going. Im glad the tea party doesnt drink your kool aid, next time you collaspe, call someone else to bail ya out. Perhaps your right,, the system isnt worth the taxes we pay to keep it moving.
 
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