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

[benwm]

Quote from forex1407:

Again, I remind that Reuters say the tax WOULD NOT APPLY TO RETAIL INVESTORS like you and me, according to the project soon presented by European commission: you trade shares, you are exempted, you trade derivatives, you are exempted ...

You mean, as opposed to the oft mentioned UK Stamp Duty tax - which works the opposite way round, where retail traders pay the tax and dealers are exempted (70% of all transactions)?

That is the only FTT that "works" and has stood the test the time, exactly for the reason that it only targets the little guy. But then the revenues are small and it makes a mockery of any moral arguments of FTT being a "tax on bankers" doesn't it?

Retail guys will take it up the arse whatever happens, it's just a question of whether they give an exemption to banks like Goldman Sachs after lobbying.

 

[benwm]

Quote from Explorer:

A summary of [Bill Gates's] report points out that forms of financial transactions taxes (FTT) already exist, as is the case in Britain and India, "and therefore seem to be feasible even without universal adoption".

http://www.onemint.com/2008/12/05/what-is-securities-transaction-tax/

So we've got the Megarich in the shape of Soros, Buffett and Gates now all on board in favour of FTT.

Real touch of class when you are in favour of higher taxes for those earning less than you.

 

[benwm]

I wonder how Gates would feel about the prospect of an email tax or a tax per minute of online usage?

All to put "sand in the wheels" of the internet and stop spammers, online porn and cyberfraud. Of course, the aims could be equally lofty - regional development, help the poor, stop illicit money floors, high frequency trading!

Maybe we should get nurses to march down the street and create a Wikipedia page for an "email tax" linked to the Tobin tax page?!

Geez...

 

[ksharmon]

UK could face costs from EU financial transaction tax even if it opts out

The FT reports that the Commission’s draft plans for a financial transaction tax, seen by the paper, could have cost implications for the UK even if the Government managed to block its introduction at the level of the EU-27. The Commission’s proposal is based on broad definition of tax residency, meaning any transaction involving one investor based in continental Europe would be hit by the levy, even if it was executed in London, New York or Asia.

http://www.ft.com/intl/cms/s/0/c4cb5688-e53c-11e0-852e-00144feabdc0.html#axzz1YZf3f4Mz


"British diplomats have vowed to block a transaction tax across all 27 EU states. But European officials familiar with Mr Barroso’s strategy said he may be prepared to accept a fall-back plan designed to allow willing countries to press on with the proposal while the UK opts out...."

 

[sheda]

One draft of the plan, seen by the Financial Times, imposes the levy on all trades in derivatives, bonds and shares, as well as a limited number of currency transactions

Any idea what that limited number of currency transactions would be, exactly?

When transactions are carried out on trade venues outside the EU, they will be subject to tax if at least one of the establishments carrying out or intervening in the transaction is located in the EU,” the draft says. This covers any financial institution that has “a branch within a member state which carries out a financial transaction

The world is now seeing how forceful and disrespectful these bastards actually are,, lets hope they ring fence there euro zone operations to the bare minimal it takes to service the population of that areas needs and carry out there other business untouched in a country that has respect, although splitting institutions is a huge task, there has to be the appropriate backlash.

 

[listedguru]

Quote from forex1407:

Again, I remind that Reuters say the tax WOULD NOT APPLY TO RETAIL INVESTORS like you and me, according to the project soon presented by European commission: you trade shares, you are exempted, you trade derivatives, you are exempted ...

Has anyone else seen anything saying retail traders would be exempt from this? Everything I've read seems to indicate the tax is going to fall on everyone.

This blurb from bloomberg seems to indicate that it's going to fall on retail traders as well:

http://www.bloomberg.com/news/2011-...-financial-transaction-tax-official-says.html

"In general, the proposed tax would be at a low rate, although the proposal doesn’t specify rates, the official said, adding that the plan won’t have different rates for retail and institutional investors."

-Guru

 

[zdreg]

Quote from listedguru:

Has anyone else seen anything saying retail traders would be exempt from this? Everything I've read seems to indicate the tax is going to fall on everyone.

This blurb from bloomberg seems to indicate that it's going to fall on retail traders as well:

http://www.bloomberg.com/news/2011-...-financial-transaction-tax-official-says.html

"In general, the proposed tax would be at a low rate, although the proposal doesn’t specify rates, the official said, adding that the plan won’t have different rates for retail and institutional investors."

-Guru

you finally woke up, mr. pollyanna. doubtful.

there is no such thing as a low rate as some mathematically challenged posters on this thread believe. .001 puts you out of business.

 

[benwm]

Quote from listedguru:


This blurb from bloomberg seems to indicate that it's going to fall on retail traders as well:

I think that is quite certain...as I said, it's just whether there will be exemptions for GS and others...

Perhaps Buffet, Gates and Soros too, based on the fact that they are "important contributors to our economy"..

 

[zdreg]

Quote from benwm:

I think that is quite certain...as I said, it's just whether there will be exemptions for GS and others...

Perhaps Buffet, Gates and Soros too, based on the fact that they are "important contributors to our economy"..

it is just like the good ole days when the specialists on the floor were exempt from theuptick rule.

i made this point hundreds of post back that the interests of goldman don't coincide with the posters on this thread.

 

[sheda]

Its true Goldman doesn't give a dam about the average investor but they express that by milking him of his money.

Being exempt from theuptick rule is only an advantage when the market is full of people who aren't, whilst they continue to plough money for the taking into the market.

Being exempt from a financial transaction tax in a market full of those who aren't, who reduce there investments or are put out of business altogether is no advantage for Goldman.

A lion does not kill a zebra to "take care of its competition" it kills it to eat, being exempt would leave them operational but if the market and transactions shrink, so do there profits, where's there advantage?