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

http://www.gfsnews.com/article/3101/1/EC_sets_out_transaction_tax_plan


"Leaked proposals seen by Global Financial Strategy show the proposals will impose the tax on the instructing party, rather than where the transaction takes place in a bid to alleviate fears of businesses relocating outside Europe to avoid the tax. This means transactions outside the EU will also be taxed.

EC commissioner for taxation Algirdas Å emeta said: "With this proposal the European Union becomes a forerunner in the global implementation of a financial transaction tax.

"Our project is sound and workable. I have no doubt this tax can deliver what EU citizens expect; a fair contribution from the financial sector. I am confident that our partners in the G20 will see their interest in following this path."
 
http://www.tax-news.com/news/Berlin_Institute_Favours_Financial_Transactions_Tax____51661.html

Final sentence: "But of course all such arguments are based on the assumption that the UK (not to mention other member states) will allow such legislation in the first place. Tax matters still require unanimity among member states, which seems inconceivable on such a subject".

(Can't figure who the G20 "partners" Barroso is talking up in my previous post. He doesn't appear to have any).
 
Huge coverage of the FTT proposal from Barroso this morning

It was one of the top BBC news stories of the morning

the FT has a piece backing the tax

http://www.ft.com/intl/cms/s/0/39051e9c-e83c-11e0-9fc7-00144feab49a.html#axzz1Z4pu7kOV

And the case for the tax, originally mooted by James Tobin, the economist, after the collapse of the Bretton Woods exchange rate regime in the early 1970s, now appears set to receive a more sympathetic hearing. Bill Gates, founder of Microsoft, is preparing a report on the subject for the G20 meeting in November. A discussion note circulating at the International Monetary Fund meetings in Washington last week suggested he thought the tax was feasible and capable of raising huge revenues.

--------------

Bill Gates, Warren Buffett and John Vogel all like it, it must be good (sarcasm now ends). Ugh.
 
http://www.bloomberg.com/news/2011-...nancial-transaction-tax-to-start-in-2014.html

"An impact assessment accompanying the proposal says that the plan would have a “long-run” negative impact of 0.5 percent of gross domestic product. The tax would affect market behavior and financial-sector business models, such as high- frequency and automated trading, the EU said.

Today’s announcement follows a 2010 proposal that failed to draw agreement among member nations. The financial industry says a transaction tax would affect the broader economy because banks would pass on costs to clients.

U.K. Business Secretary Vince Cable earlier today said taxation is a “national competence issue” and European Union proposals for a levy on financial transactions cannot be forced on the U.K. Cable was speaking to Bloomberg Television from Istanbul. "
 
Quote from JamesL:

http://www.bloomberg.com/news/2011-...nancial-transaction-tax-to-start-in-2014.html

"An impact assessment accompanying the proposal says that the plan would have a “long-run” negative impact of 0.5 percent of gross domestic product. The tax would affect market behavior and financial-sector business models, such as high- frequency and automated trading, the EU said.

Today’s announcement follows a 2010 proposal that failed to draw agreement among member nations. The financial industry says a transaction tax would affect the broader economy because banks would pass on costs to clients.

U.K. Business Secretary Vince Cable earlier today said taxation is a “national competence issue” and European Union proposals for a levy on financial transactions cannot be forced on the U.K. Cable was speaking to Bloomberg Television from Istanbul. "
More...

this cant be good
 
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