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

Lets assume they enact a transaction tax as follows:

$1 per futures contract or futures option.
$1 per stock trade (100 shares)
$1 per stock option.

CME avg daily volume is approx 10,000,000 contracts
NYSE avg daily volume is approx 2 billion shares:

The tax is collected from the broker and rolled into your trading costs.
This transaction tax would generate approx $30M a day / $6.6B a year.

While this seems bearable and a sizeable amount of tax revenue in the grand schemes it is nothing. To put a dent into our deficit they would need to charge 10x so they can project $66B tax revenue stream.

$10 tax per trade would kill the markets, 1/4% tax on a $60K futures contract is insane.
 
Well I don't see much being said regarding the FTT out of the G20 meeting. It doesn't look like it made it in to the final comminque so thats good. Here's a couple quotes I did see:

"German finmin says will act on transaction tax."

https://research.tdwaterhouse.ca/research/public/Markets/NewsArticle/1314-LDE71I0EI-1

ITALIAN ECONOMY MINISTER GIULIO TREMONTI:
ON FINANCIAL TRANSACTION TAX:

"We have a wait-and-see attitude on it. Italy's decision on this French proposal will depend on who will apply it and how."


GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE
ON FINANCIAL TRANSACTION TAX:

"I still believe, one should do this in Europe".

Still nothing from Geithner but to me it sounds like the FTT issue wasn't even really discussed so thats probably why. It will be interesting to see how things play out going forward. I still don't see Germany or France going ahead with the FTT.

-Guru
 
Quote from FightTheFuture:

Australia:

The federal Treasurer, Wayne Swan, says they will escape both a mining-style super profits tax and a special bank transactions tax.

http://www.smh.com.au/business/no-super-profits-tax-for-banks-says-swan-20110220-1b10w.html
More...

From that article:

''When it comes to a bank transaction tax, that was floated and discussed in the G20, but there is no action flowing from that.''

This seems to confirm again that there is scant interest in an FTT at G20 level.
 
Quote from Explorer:

From that article:

''When it comes to a bank transaction tax, that was floated and discussed in the G20, but there is no action flowing from that.''

This seems to confirm again that there is scant interest in an FTT at G20 level.
More...

Yes it's very interesting that the FTT received such little press before and after this G20 meeting. I guess the ball is now in Frances' and Germanys court so to speak. We can rest assured that the G20 has spoken loud and clear again and they don't want this tax. Why can't France and Germany see this?

It will be interesting to see what happens with the FTT in France and Germany. My thought is this just fades away as they'll never get consensus in the EU and are too afraid to go it alone:)

-Guru
 
Quote from Explorer:

(re Wayne Swan's rejected FTT and bank profit taxes):-

:D No-one wanted to hear Sarkozy and Merkel. Compliance with populist bidding is political weakness, especially when such appeal turns to national detriment. No always meant no.

Someone should tell De Crazio and Stark (and Obama) that competing financial centres are open for business.

There's no climate more destabilising for business than uncertainty.
:D
More...
 
http://online.wsj.com/article/BT-CO-20110220-703211.html

La Garde: "No matter what, along with other countries that are willing, we plan to put into place financial taxation," she said.

"It would be ideal for everyone to agree to it but the problem today is that a certain number of countries do not agree," she said.

The German financial ministry agrees in "going in this direction," while the U.S. is "very hostile to the mechanism even if the country is interested in helping developing countries deal with climate change," she added.

(So the US has also objected - maybe not loud, but very clear).


:D
 
Quote from andohmeeta:

http://online.wsj.com/article/BT-CO-20110220-703211.html

La Garde: "No matter what, along with other countries that are willing, we plan to put into place financial taxation," she said.

"It would be ideal for everyone to agree to it but the problem today is that a certain number of countries do not agree," she said.

The German financial ministry agrees in "going in this direction," while the U.S. is "very hostile to the mechanism even if the country is interested in helping developing countries deal with climate change," she added.

(So the US has also objected - maybe not loud, but very clear).


:D
More...



Let these idiots implement their own FTT. They will fail miserably to raise any sort of revenues, as the majority of their own investment dollars will flock to the U.S, Canada, and other countries that flat out refuse to draft a FTT. But then again, what other types of brainless decisions would you expect from the French and German Govt's? LOL!!!! :D
 
G20 ministers reject calls for climate justice:


http://news.yahoo.com/s/oneworld/20110221/wl_oneworld/63531668711298283615


LONDON, Feb 21 (OneWorld.net) - Proposals for a global financial transaction tax to help the development of poor countries affected by climate change have been ignored by the world's leading finance ministers.

The commitment of the French hosts to put this tax at the heart of the G20 agenda appears to have been lost in translation. The final communique of the meeting in Paris which concluded on Saturday was conspicuously silent on the subject.

The only consolation for the French was an expression of German support for a transaction tax together with news that the philanthropist, Bill Gates, has agreed to work with President Nicolas Sarkozy on innovative ways to raise funds for poor countries.

-Guru
 
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