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

Analysis: Viability of Sarkozy's euro crisis ideas in question

http://news.yahoo.com/analysis-viability-sarkozys-euro-crisis-ideas-145339924.html

"Such a tax -- first put forward by economist James Tobin in the early 1970s -- could only function if imposed across the board, otherwise trading would flee to tax-free markets, but the European Central Bank and non-euro member Britain oppose it.

"It is hard to understand how they can do something on that within the timetable of September. The ECB has made it clear it is totally opposed to the tax, as have several other governments," said UBS senior European economist Stephane Deo.

Only Austria and Italy said they would support the tax.
 
Martin Callanan, leader of the Conservative MEPs, called for David Cameron to "state categorically that the UK will reject any plans" for the tax.

The Adam Smith Institute published a note warning that introducing the tax, sometimes called the Tobin Tax, in the UK would be "economic suicide".

The Association for Financial Markets in Europe (AFME), which represents leading banks, also said a tax would simply bump up costs for a large section of European industry and hit growth.

http://www.telegraph.co.uk/finance/...would-veto-tax-on-financial-transactions.html
 
http://online.wsj.com/article/SB10001424053111903639404576514270644127998.html
EU Transaction Tax Is Criticized
WSJ

When in doubt and with no good solutions at hand, French and German leaders threaten a FTT - which continues to be a place holder. Post your Comments on this article. Here's mine.

Merkel and Sarkozy don't understand financial matters. That's obvious with them both backing this ludicrous and destructive financial-transaction tax. We need European leaders who understand finance in order to fix Europe's huge financial problems. This greedy tax grab signals an end to Merkel and Sarkozy's realistic bid for re-election. It opens the door to new leaders with much more financial experience.
 
UK anger over eurozone plan to tax all City transactions

Tory former Cabinet minister John Redwood urged the Treasury to veto it. "It really does take the biscuit that France and Germany get together to discuss how to raise money for the poor parts of the eurozone and come up with a tax that hits Britain hardest," he said. "It is a very unfriendly gesture."

Mark Field, Tory MP for Cities of London and Westminster, said eurozone stability was important, but added: "London is going to want to do all it can to resist going down that path."

The Treasury has emphasised that any such tax would need to be truly international so as not to disadvantage participating countries.

A source today said officials were waiting to see details, but vowed: "We will defend the British national interest every step of the way."

http://www.thisislondon.co.uk/stand...eurozone-plan-to-tax-all-city-transactions.do
 
Ireland to insist transaction tax apply to whole EU:

http://www.reuters.com/article/2011/08/17/ireland-europe-idUSL5E7JH0MC20110817

DUBLIN, Aug 17 (Reuters) - Ireland warned on Wednesday that French and German proposals to introduce a new financial transaction tax will face opposition from other European countries and Dublin will insist that any such tax apply to the entire EU, not just euro zone members.

"We can't have a situation where there is a transaction tax in Dublin and there is no transaction tax in London," Finance Minister Michael Noonan told Ireland's state broadcaster on Wednesday.

But Noonan said such a suggestion had already been rejected at a meeting of European leaders last month and fresh proposals would face renewed opposition, possibly even from financial firms in France.

"There would be a lot of objections to it from countries with strong financial services industry participation -- Luxembourg, Netherlands, even Paris."

"One of the key things we need to watch is that if some kind of transaction tax comes in that it would apply to the whole 27 (European Union countries) rather than the 17 euro zone countries."


So Ireland doesn't sound too keen on the ftt and the UK is a flat out no. Add in Luxembourg, Netherlands, Malta and Sweden as "no's" and I think it's safe to say there will be no EU ftt. Now if Germany and or France are stupid enough to go it alone then thats their problem (LOL).

-Guru
 
Quote from Lamar95:

This is very bad:

"He also says the tax will be levied according to the domicile of the customer ordering the transaction, rather than according to the marketplace in which it is executed."

http://online.wsj.com/article/SB100...36706.html?mod=WSJEUROPE_hpp_MIDDLESecondNews
More...

From reading the above piece the author seems to indicate that the UK might not be so against this tax? Is he serious? I cannot see anyway in which the UK would go along with this. It would be a very self destructing thing to do.

There were articles out just yesterday citing UK Treasury officials saying the UK would veto this tax if it comes up for a vote.

-Guru
 
What I think he is trying to say is due to the tax being levied according to the domicile of the customer there will be enough poor bastards stranded who cant gain citizenship in another country to make the UK think its worth while.
 
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