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

Quote from rc8222:

Japan Economy Minister: Opposes Sarkozy's Tobin Tax Proposal


http://www.google.com/url?url=http:...on+tax&usg=AFQjCNEh0-W4v5EtATvxJotsuzxDjfRM-w
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Nice. Remember that Japan was part of the "leading group".

So we have France, Germany, Austria,( perhaps Brazil, Italy )Vs UK, US, Japan, China, India, Korea, Canada, Australia, Sweden, Czech Republic, Russia, Australia...:) The problem is that the opponents are really quiet, almost ashamed, for political reasons and the pro-tax are very loud because a transaction tax is a very popular thing to promote.

What is great is the current state of affair is that 2-3 years ago, if the US would have said "yes", we would have been in serious trouble. Today, it simply wouldn't be enough for a global consensus as transaction volume in Asia has topped North America...

:)
 
Quote from TraDaToR:

Nice.
The problem is that the opponents are really quiet, almost ashamed, for political reasons and the pro-tax are very loud because a transaction tax is a very popular thing to promote.

I don't believe they are ashamed. They could be irritated by grandstanding outsiders trying to pressurise them into participating in a highly reckless and long-term risky proposition. For example, what chaos could happen if war broke out and political and economic dynamics and alliances suddenly changed for the worse?

Empty barrels make the most noise. They've been told "NO" several times. It looks like they are publicly devaluing and holding in contempt the capacity of foreign governments to make their own decisions. Polite foreign courtesy dictates they don't tell Sarkozy to get stuffed.

That was a strong statement from the Japanese Economy Minister. They're usually reserved, but probably like the rest - had enough of Sarkozy and Merkel.
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I think it is always hard for a politician to stand publicly against a popular( populist ) idea even if obvious practical reasons are telling him to do so. And Tobin Tax is one of the easiest mean to get the public's sympathy, and one of the most popular among Main Street( taxing 0.01% of the money of the guys who are making billions creating hunger in Africa and destroying our economies, what does look wrong in this for a blue collar worker? Nothing).
 
Quote from TraDaToR:

I think it is always hard for a politician to stand publicly against a popular( populist ) idea even if obvious practical reasons are telling him to do so. And Tobin Tax is one of the easiest mean to get the public's sympathy, and one of the most popular among Main Street( taxing 0.01% of the money of the guys who are making billions creating hunger in Africa and destroying our economies, what does look wrong in this for a blue collar worker? Nothing).
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Agreed. That's why blue collar workers will be placated, but in the final analysis, there will be no surrender.
 
Great simple rebuttal to Sarkozy from Japan's economy minister, that FTT is 'duplicated taxation, defective and fundamentally unfair.' Absolutely correct.

FTT taxes revenues and costs - each side of the trade - and we already tax income, so it's clearly duplicated taxation.

Even in VAT, you deduct the prior parties cumulative VAT paid, but not with FTT, it's duplicated taxation there too.

Both buyer and seller are charged FTT, duplicated taxation again. People buy and sell the same instrument over and over, duplicated taxation again.

Tax treaties between countries fundamentally protect taxpayers from double-taxation, another potential problem for FTT.

FTT is greedy duplicated taxation from fat cat government officials who want to win praise by doling out a small portion of the spoils to their favorite charities. Cut spending and taxes, don't raise taxes with duplicated taxation. Thumbed iPhone.
 
Good old Dean Baker:

Financial speculation tax could cut deficit:

http://money.cnn.com/2011/01/24/markets/financial_speculation_tax/index.htm

"This is not hypothetical," said Dean Baker, co-director at CEPR and author of the report, in a statement. "The UK has used an FST to collect large amounts of revenue," he said, adding that the International Monetary fund "is currently advocating the tax in recognition of the enormous amount of waste and rents in the financial sector."


So now Baker is saying that the IMF is advocating the tax. What a joke. Some IMF economist published a paper last year saying in his opinion a FTT could work. This was one paper and certainly not the opinion of the IMF as a whole. IIRC Strauss-Kahm came out against the tax (again) recently.

You gotta love how these lib's flat out lie. I was impressed that Japan came out against the tax. Hopefully the US comes out against it again so that Sarkozy drops the issue and spends his G20 Chairmanship on more important matters. Also I believe Sarkozy is up for reelection next year.

-Guru
 
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