1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
UK antipathy will sink Tobin tax despite it's moral appeal:
http://www.irishtimes.com/newspaper/opinion/2011/1001/1224305084832.html
In truth, however, no matter how morally appealing in terms of tax equity â and it definitely is that â the Tobin tax is almost certainly politically doomed. It will be sunk by vehement British opposition, backed, no doubt, by a Dublin implacably opposed to EU encroachment on ânationalâ tax bases and prerogatives.
-Guru
http://www.irishtimes.com/newspaper/opinion/2011/1001/1224305084832.html
In truth, however, no matter how morally appealing in terms of tax equity â and it definitely is that â the Tobin tax is almost certainly politically doomed. It will be sunk by vehement British opposition, backed, no doubt, by a Dublin implacably opposed to EU encroachment on ânationalâ tax bases and prerogatives.
-Guru
A group of European politicians is plotting to impose the financial transaction tax (FTT) in a way that Britain would be powerless to veto, a British MEP has warned.
http://www.telegraph.co.uk/finance/...ns-ploting-to-block-UK-veto-on-Tobin-tax.html
http://www.telegraph.co.uk/finance/...ns-ploting-to-block-UK-veto-on-Tobin-tax.html
Wow that is scary if it's true. These Socialist scumbags will stop at no length to destroy capitalism.
I just don't see how they can pass it off as a VAT tax? Also how would that not require unanimous approval as well?
-Guru
If you think that's scary, take a look at this. Barroso says that more power has to be concentrated in EU institutions because "national governments can't be trusted."
There's no question that Barroso is hell-bent on destroying not only capitalism, but also democracy.
http://www.spiegel.de/international/europe/0,1518,789300,00.html
There's no question that Barroso is hell-bent on destroying not only capitalism, but also democracy.
http://www.spiegel.de/international/europe/0,1518,789300,00.html
http://europa.eu/pol/tax/index_en.htm
Your national government decides how much tax you pay â not the European Union. What the EU does is ensure that national tax rules are consistent with the Unionâs overarching goals of job creation and that they do not give businesses from one country an unfair advantage over their competitors in another country. EU tax policy is about upholding the principles of the single market and free movement of capital[...]
[...]Value-added tax (VAT) is a partial exception and requires a degree of EU involvement as it is fundamental to a properly functioning single market and fair competition across the EU. The EU has therefore set common rules for the operation of VAT, and a lower limit on the VAT rates that can be charged.
This nevertheless leaves considerable leeway for national differences in VAT rates. This is due in particular to the following reasons: lack of maximum rates, the optional application of one or two reduced rates, the choice of categories of goods or services eligible for reduced rates remaining with the Member States, (they may choose from an exhaustive list that includes food and medicine), as well as the temporary derogations granted to certain EU countries under particular conditions.
Moreover, VAT rules respect the EU principle that decisions on tax matters can only be taken if all countries are in unanimous agreement. This rule safeguards national autonomy.
Your national government decides how much tax you pay â not the European Union. What the EU does is ensure that national tax rules are consistent with the Unionâs overarching goals of job creation and that they do not give businesses from one country an unfair advantage over their competitors in another country. EU tax policy is about upholding the principles of the single market and free movement of capital[...]
[...]Value-added tax (VAT) is a partial exception and requires a degree of EU involvement as it is fundamental to a properly functioning single market and fair competition across the EU. The EU has therefore set common rules for the operation of VAT, and a lower limit on the VAT rates that can be charged.
This nevertheless leaves considerable leeway for national differences in VAT rates. This is due in particular to the following reasons: lack of maximum rates, the optional application of one or two reduced rates, the choice of categories of goods or services eligible for reduced rates remaining with the Member States, (they may choose from an exhaustive list that includes food and medicine), as well as the temporary derogations granted to certain EU countries under particular conditions.
Moreover, VAT rules respect the EU principle that decisions on tax matters can only be taken if all countries are in unanimous agreement. This rule safeguards national autonomy.
This just showed up in my RIA tax service for CPA firms:
New developments at a glanceââ [Top]
European Commission proposes tax on financial transactions: The European Commission, September 28, formally adopted a proposal for a bloc-wide financial transaction tax (FTT) that would be levied on all transactions between financial institutions that involve financial instruments where at least one party to the transaction is located in the EU. Under the proposal, unveiled by EC president Jose Manuel Barroso, the FTT would be imposed on the exchange of shares and bonds at a rate not lower than 0.1 percent and on derivative contracts, at a rate not lower than 0.01 percent. Member States could elect to impose the FTT at higher rates. An accompanying press release said that the FTT could generate EUR 57 billion per year (USD 77 billion), which the Commission proposed would come into effect on January 1, 2014. "It is time for the financial sector to make a contribution back to society," Barroso said, suggesting that the imposition of the tax would be fair in light of EUR 4.6 trillion that taxpayers were required to provide to help banks through the recent financial crisis.
The draft legislation provides that the FTT would be imposed on a financial institution: (1) that is a party to the transaction, acting either on behalf of another person or itself; (2) that is acting in the name of a party to the transaction; or (3) where the transaction has been carried out on its account. Most financial instruments (e.g. securities, bonds, etc.) and derivatives (e.g. options or swaps) will be covered by the FTT. Conversely, spot currency exchange transactions, home mortgages, borrowing by small-medium sized enterprises (SMEs) and the raising of capital by enterprises or public bodies will not be covered by the FTT. The EU said that both parties to the transaction would be required to pay their share of the tax in their country of residence (or deemed residence). The tax would be applicable in all 27 Member States of the EU. In instances where a Member State imposes a national tax on financial transactions, the EU said that the tax would need to comply with EU regulations. Currently, Belgium, Cyprus, France, Finland, Greece, Ireland, Italy, Romania, Poland and the U.K. have a financial tax in place which would require them to align their existing taxes with the FTT (i.e. apply the minimum rate and harmonize the tax base as provided by the EU rules on the FTT).
The proposal will be discussed by all EU Member States and the EC will present it to the G-20 Summit in November. Many Member States have already expressed their concerns with the proposal. After the measure was unveiled by Barroso, the U.K. said it would only support a financial transaction tax that applies globally. "The government will continue to engage with its international partners on FTT and has no objection to them in principle. But any financial transaction tax would have to apply globally and there are a number of practical issues that need to be worked through," an HMRC spokesman said.
The Netherlands took a similar view, but went a step further in calling the FTT potentially "dangerous" to European banks. "If such a tax must be introduced, than it must be done globally. If you only do it in Europe, that would be very bad, and even dangerous for the European banks," the Dutch deputy foreign minister, Ben Knapen, said in a statement.
New developments at a glanceââ [Top]
European Commission proposes tax on financial transactions: The European Commission, September 28, formally adopted a proposal for a bloc-wide financial transaction tax (FTT) that would be levied on all transactions between financial institutions that involve financial instruments where at least one party to the transaction is located in the EU. Under the proposal, unveiled by EC president Jose Manuel Barroso, the FTT would be imposed on the exchange of shares and bonds at a rate not lower than 0.1 percent and on derivative contracts, at a rate not lower than 0.01 percent. Member States could elect to impose the FTT at higher rates. An accompanying press release said that the FTT could generate EUR 57 billion per year (USD 77 billion), which the Commission proposed would come into effect on January 1, 2014. "It is time for the financial sector to make a contribution back to society," Barroso said, suggesting that the imposition of the tax would be fair in light of EUR 4.6 trillion that taxpayers were required to provide to help banks through the recent financial crisis.
The draft legislation provides that the FTT would be imposed on a financial institution: (1) that is a party to the transaction, acting either on behalf of another person or itself; (2) that is acting in the name of a party to the transaction; or (3) where the transaction has been carried out on its account. Most financial instruments (e.g. securities, bonds, etc.) and derivatives (e.g. options or swaps) will be covered by the FTT. Conversely, spot currency exchange transactions, home mortgages, borrowing by small-medium sized enterprises (SMEs) and the raising of capital by enterprises or public bodies will not be covered by the FTT. The EU said that both parties to the transaction would be required to pay their share of the tax in their country of residence (or deemed residence). The tax would be applicable in all 27 Member States of the EU. In instances where a Member State imposes a national tax on financial transactions, the EU said that the tax would need to comply with EU regulations. Currently, Belgium, Cyprus, France, Finland, Greece, Ireland, Italy, Romania, Poland and the U.K. have a financial tax in place which would require them to align their existing taxes with the FTT (i.e. apply the minimum rate and harmonize the tax base as provided by the EU rules on the FTT).
The proposal will be discussed by all EU Member States and the EC will present it to the G-20 Summit in November. Many Member States have already expressed their concerns with the proposal. After the measure was unveiled by Barroso, the U.K. said it would only support a financial transaction tax that applies globally. "The government will continue to engage with its international partners on FTT and has no objection to them in principle. But any financial transaction tax would have to apply globally and there are a number of practical issues that need to be worked through," an HMRC spokesman said.
The Netherlands took a similar view, but went a step further in calling the FTT potentially "dangerous" to European banks. "If such a tax must be introduced, than it must be done globally. If you only do it in Europe, that would be very bad, and even dangerous for the European banks," the Dutch deputy foreign minister, Ben Knapen, said in a statement.
