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

I don't understand how they would pass it as a Value-Added Tax as there is no value added. That what makes it different from other activities. In other sectors, you transform a good , produce a service and give a value to your work. The good or service can't decrease in value with your work. In trading, it is the same exact good or service that change hands and its value change according to supply and demand, which means the "value added" is negative for most transactions( 50/50 + commissions and spread = negative expectancy ).
 
She said a group led by Algirdas Semeta, the European tax commissioner, had "already started work" on presenting FTT as a "valued added tax" - which could be imposed without being ratified by a vote.

This argument appears to be flawed because while changes to VAT arrangements are proposed by the Commission they have to be passed by the Council, in the form of a Directive maybe always accompanied by a Regulation, and they have to be passed unanimously.

For example this 2007 press release, "Modernising VAT rules applied on financial and insurance services – Frequently Asked Questions":

http://europa.eu/rapid/pressRelease...format=HTML&aged=0&language=en&guiLanguage=en

ends with this:

"Both proposals for a Council Directive and for a Council regulation need to be agreed unanimously by the Member States, after consultation of the European Parliament. Once approved by the Council of Ministers, the Directive still needs to be transposed in national law while the regulation is directly applicable in all Member States."

Looking at this 2007 Commission proposal for a Directive:

http://ec.europa.eu/taxation_custom...on/whats_new/comm_native_com_2007_0747_en.pdf

the cited legal base was "Article 93 of the Treaty", which is now Article 113 TFEU and still requires unanimity:

"Article 113

(ex Article 93 TEC)

The Council shall, acting unanimously in accordance with a special legislative procedure and after consulting the European Parliament and the Economic and Social Committee, adopt provisions for the harmonisation of legislation concerning turnover taxes, excise duties and other forms of indirect taxation to the extent that such harmonisation is necessary to ensure the establishment and the functioning of the internal market and to avoid distortion of competition."
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The VAT approach is still speculation -
 
Quote from tomdavis:

...Defazio's tax would accomplish what al-queda could not -- the destruction of the US as the world's financial center
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How thoughtful of Defazio to insult the victims of 9/11 right on the 10th anniversary.
 
Without the UK this tax is a bust -- 70% of all the revenues would come from London.

This isn't an EU tax. It's a tax on the UK.




Quote from Stok:

One thing that bugs me about all this, wasn't Germany against this tax awhile back? I remember reading they were and then they supported it. Hope the UK does not do the same thing. London will be destroyed.
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Quote from Robert A. Green:


<strong>It’s time for traders to march to.</strong>
Traders should start expressing themselves in the financial markets rather than just media comment boards, and petitions sent to elected officials. The time for debate is over and it’s time for some power politics of our own. Boycott French and German financial markets, trading instruments, the euro and debt instruments. Don’t speculate on PIIGS debt or provide liquidity in Europe when they need it most. Teach them a trading business lesson 101, the value of market-makers, liquidity providers and speculators. They won’t value your role until you leave the negotiating trading-table.
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Robert, you've done some great work but I don't agree with this idea!
We might get our boycott forced on us in 2014 so we need to make good now.

We are not losing this debate. The situation in the UK is actually very positive - the coalition government is resolutely against this EU tax proposal, and the Labour opposition party also knows it would harm the UK's interests. I think there is a growing feeling on all sides that too much power has shifted away to Brussels.
 
Quote from benwm:

Robert, you've done some great work but I don't agree with this idea!
We might get our boycott forced on us in 2014 so we need to make good now.

We are not losing this debate. The situation in the UK is actually very positive - the coalition government is resolutely against this EU tax proposal, and the Labour opposition party also knows it would harm the UK's interests. I think there is a growing feeling on all sides that too much power has shifted away to Brussels.
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Agree with you. I am not marshaling trader troops to march on Brussels at this time.

In an ideal world - not our case - it would be nice to see how the financial markets would be with a destructive FTT in place. To be able to show the damage so officials would table the tax motion. They aren't listening to the Swedes about their bad experience with FTT before.
 
Quote from listedguru:

I cannot believe I am reading this. This makes no sense at all. Why would the UK adopt the ftt and throw their entire financial industry under the bus?

How many statements have we seen from UK goverment officials lately saying no way to this tax. So now their going to completely reverse course and agree to a huge EU power grab? I just don't see it.


-Guru
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Read clarification at foot of story:


http://www.accountancyage.com/aa/news/2114583/tobin-tax-banking-chief#comments


"Not in the UK

British Bankers' Association here. We'd best clarify this: while the UK Government has made its position clear, and the BBA agrees with it that the imposition of a further financial transactions tax would be seriously flawed, we think eurozone governments are likely to press ahead regardless. No we do not expect it to become a reality in the UK.

Posted by: British Bankers, 05 Oct 2011 | 11:17 "

Cannes G20 remains the major FTT metaphorical litmus test. Flaherty's confidence that there are sufficient G20 members that will not adopt is a reliable hint as to prevailing numbers. Club members have arrived at their positions well in advance of their meetings. Inter-governmental communications provide them with inside knowledge about political intentions of their peers. If there were any changed views since 2010, they would be siding with Europe by now, and probably kite-flying those views.
The opposite appears to be the case.
The G20 Cannes Communique - coming soon.
 
This article seems to think the ftt can squeak by in the US (LOL). Basically it's a rehash of the Politico piece from earlier with some added dribble:

Rep. Defazio Aims to tax trading:

http://www.advisorone.com/2011/10/05/rep-defazio-aims-to-tax-trading

However, although businesses are already preparing to oppose any such tax, the political climate may have changed enough for it to squeak by."

"Although the Obama administration has said previously that it did not support such a tax, the fact that Europe is embracing the notion may change that stance..."

This just makes me LOL. So now that Europe is embracing it thats the green light for us to support it as well. Who comes up with this crap?

-Guru
 
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