1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
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Dutch public support for FTT isn't so strong as it is in eg. Germany. I think Dutch PM just doesn't have the guts to speak out loud his opinion (which actually is a big NO), anxious he is as Mr. Nice Guy to disappoint Merkel and Sarkozy. I guess he is hoping that this thing will pass over, before he has to take a decision.
Suppose that Monti lastly changes his position (i suspect Merkel counts on that). His worst nightmare would be, that then he (as PM of the remaining most important EZ country) is to blame for the failure of passing this agreement in EZ, especially if the FTT would be part of the new treaty (like Merkel wants to). I don't think he is brave enough to block the new treaty, even if the FTT would be part of it. Needless to say, i hope i would be terribly wrong
Germany Tries to Persuade UK on EU Exchange Tax:
http://www.nasdaq.com/article/germany-tries-to-persuade-uk-on-eu-exchange-tax-20120119-01017
BERLIN -- The European Union should consider imposing a stock exchange tax in the 27-member strong bloc to follow the example of the U.K.'s stamp tax, German Economics Minister Philipp Roesler told a German newspaper in comments published Thursday.
Roesler made the comments as the EU faces an uphill struggle to impose a financial transaction tax in the bloc which is being opposed by the U.K., Sweden, Denmark and the Czech Republic.
"We should think about a possible way to get the U.K. on board. The British already have a special form of a stock exchange turnover tax, the so-called stamp tax," Roesler was quoted as saying in an advanced release of the report in Friday's Rheinische Post.
"If the British aren't willing to get closer to the European model of a financial transaction tax, it would make sense to talk together with the British and other European states about the British model."
The comments come as Roesler opposes Chancellor Angela Merkel's view to introduce the financial transaction tax on a euro-zone level if leaders don't sign up for a EU-wide agreement.
The U.K. imposes a stamp tax of 0.5% of the value of a securities purchase on the buyer. But this tax does not apply to the forex market.
Roesler said the financial sector must help pay for the costs of the crisis and those benefiting most are in the U.K.
"Therefore we have a particular interest to get the U.K. on board," he said. " We must prevent one-sided competition disadvantages for Germany as a financial location and at the cost of customers."
http://www.nasdaq.com/article/germany-tries-to-persuade-uk-on-eu-exchange-tax-20120119-01017
BERLIN -- The European Union should consider imposing a stock exchange tax in the 27-member strong bloc to follow the example of the U.K.'s stamp tax, German Economics Minister Philipp Roesler told a German newspaper in comments published Thursday.
Roesler made the comments as the EU faces an uphill struggle to impose a financial transaction tax in the bloc which is being opposed by the U.K., Sweden, Denmark and the Czech Republic.
"We should think about a possible way to get the U.K. on board. The British already have a special form of a stock exchange turnover tax, the so-called stamp tax," Roesler was quoted as saying in an advanced release of the report in Friday's Rheinische Post.
"If the British aren't willing to get closer to the European model of a financial transaction tax, it would make sense to talk together with the British and other European states about the British model."
The comments come as Roesler opposes Chancellor Angela Merkel's view to introduce the financial transaction tax on a euro-zone level if leaders don't sign up for a EU-wide agreement.
The U.K. imposes a stamp tax of 0.5% of the value of a securities purchase on the buyer. But this tax does not apply to the forex market.
Roesler said the financial sector must help pay for the costs of the crisis and those benefiting most are in the U.K.
"Therefore we have a particular interest to get the U.K. on board," he said. " We must prevent one-sided competition disadvantages for Germany as a financial location and at the cost of customers."
Says it all eh? I dont see the British agreeing to a stamp duty because it amounts to no more than the following:
"Hey we will impliment the exact same model of taxation that you have on your British exchanges, and we then expect you to give us, the European Union a large percentage of the tax revenue that you currently receive from your exchanges"
It still amounts to a total loss - no gain for the British and the formation of a direct EU taxation system.
Quote from Rantany:
Dutch public support for FTT isn't so strong as it is in eg. Germany. I think Dutch PM just doesn't have the guts to speak out loud his opinion (which actually is a big NO), anxious he is as Mr. Nice Guy to disappoint Merkel and Sarkozy. I guess he is hoping that this thing will pass over, before he has to take a decision.
Suppose that Monti lastly changes his position (i suspect Merkel counts on that). His worst nightmare would be, that then he (as PM of the remaining most important EZ country) is to blame for the failure of passing this agreement in EZ, especially if the FTT would be part of the new treaty (like Merkel wants to). I don't think he is brave enough to block the new treaty, even if the FTT would be part of it. Needless to say, i hope i would be terribly wrong
You may be right. The UK, Sweden, Denmark and even Malta aren't afraid to say no to Merkel. So perhaps the Dutch PM thinks if he just keeps quiet, others will fight the battle for him. Too bad about that. The Dutch FM used to be a very vocal opponent of the FTT. Obviously somebody told him to shut his mouth because he suddenly went silent.
Merkel's strategy has always been to isolate the UK. By making this phony stamp tax offer she's trying to swing more votes her way and leave Britain standing alone. She's made it clear she'll stop at nothing to destroy London. We'll find out more at the EU meeting at the end of January.
Yeah I don't see the Brits falling for this stamp duty tax either (or a number of other EU countries as well). Especially now that the so called 'secret document' has been leaked talking about Merkel and Co wanting Energy taxes, etc. A FTT or Stamp Tax or any tax for that matter at the EU level is just a step towards member states handing over their taxing ability to the EU. I don't think they'll fall for it (at least I hope not).
-Guru
regardless of any principles and things the uk should or should not do, the uk stamp tax makes my trading just as unprofitable as a ftt would. i don't trade the uk precisely for that reason, and i'm guessing none of us are.
so while the ftt is definitely an evil, the uk stamp tax is as well. it's just that the one isn't here yet, while the other has been around for a long long time. ideally both would be abolished.
so while the ftt is definitely an evil, the uk stamp tax is as well. it's just that the one isn't here yet, while the other has been around for a long long time. ideally both would be abolished.
I've been expecting some leaders in the EU to try and break the deadlock with the UK by suggesting adoption of the British stamp duty tax model throughout the EU, rather than FTT, which has hit a wall. But, I dared not mention it, as I didnât want to advance the idea.
This can go different ways. Germany can call it âUK-style stamp dutyâ, but expand on it so it's really more like FTT in disguise. In my view, they've been confused by the difference between stamp duty and FTT all along, or at least they made confusing statements and helped the media pass along the confusion.
Most people still don't understand that stamp duty falls on retail investors and traders, and it exempts liquidity providers, market makers and banks. Maybe, the EU finally realized that FTT would destroy liquidity providers with the cascading effect and rapid turnover in money market accounts, and itâs impossible when you wake up to the probable carnage of FTT. So, they are now falling back on stamp duty anyway, as they need something to take the political-place of FTT. To scrap it entirely now would make them look foolish.
The U.S. wonât pass stamp duty as the burden falls on investors, and pensions, just what Secretary Geithner and President Obama didnât like most about FTT.
German Vice Chancellor Philipp Rosler http://en.wikipedia.org/wiki/Philipp_Rösler is making a clever political and practical move here. He is in the FDP party http://en.wikipedia.org/wiki/Free_Democratic_Party_(Germany). Itâs his counter move to Merkel and CDU officials trying to very recently berate the 2%-poll FDP junior-coalition partner of Merkelâs CDU.
This move might force the UK back to the negotiating table and also diffuse Merkel and her FTT full-court press.
Now, what about the issue of who keeps UK stamp duty revenues? Germany might be okay with the UK keeping their stamp duty revenues. Germany may want to keep their own stamp duty revenues too and not share them with Greece. Later on, perhaps the euro zone can pool stamp duty and the UK can still keep theirs. Thatâs down the road.
Letâs first see if this stamp duty trial balloon can break Merkelâs death-grip on FTT.
After FTT is killed off hopefully, we can tackle stamp duty as a bad idea too, as it falls on Main Street investors, just as Obama said at the G-20. Why raise taxes on Main Street during a recession, when your rhetoric is focused on banks?
This can go different ways. Germany can call it âUK-style stamp dutyâ, but expand on it so it's really more like FTT in disguise. In my view, they've been confused by the difference between stamp duty and FTT all along, or at least they made confusing statements and helped the media pass along the confusion.
Most people still don't understand that stamp duty falls on retail investors and traders, and it exempts liquidity providers, market makers and banks. Maybe, the EU finally realized that FTT would destroy liquidity providers with the cascading effect and rapid turnover in money market accounts, and itâs impossible when you wake up to the probable carnage of FTT. So, they are now falling back on stamp duty anyway, as they need something to take the political-place of FTT. To scrap it entirely now would make them look foolish.
The U.S. wonât pass stamp duty as the burden falls on investors, and pensions, just what Secretary Geithner and President Obama didnât like most about FTT.
German Vice Chancellor Philipp Rosler http://en.wikipedia.org/wiki/Philipp_Rösler is making a clever political and practical move here. He is in the FDP party http://en.wikipedia.org/wiki/Free_Democratic_Party_(Germany). Itâs his counter move to Merkel and CDU officials trying to very recently berate the 2%-poll FDP junior-coalition partner of Merkelâs CDU.
This move might force the UK back to the negotiating table and also diffuse Merkel and her FTT full-court press.
Now, what about the issue of who keeps UK stamp duty revenues? Germany might be okay with the UK keeping their stamp duty revenues. Germany may want to keep their own stamp duty revenues too and not share them with Greece. Later on, perhaps the euro zone can pool stamp duty and the UK can still keep theirs. Thatâs down the road.
Letâs first see if this stamp duty trial balloon can break Merkelâs death-grip on FTT.
After FTT is killed off hopefully, we can tackle stamp duty as a bad idea too, as it falls on Main Street investors, just as Obama said at the G-20. Why raise taxes on Main Street during a recession, when your rhetoric is focused on banks?
Someone needs to tell it like it is sooner rather than later. By the end of this month Merkel and her cronies will be pitching the stamp tax to an ignorant public as "a way to make the financial sector pay their fair share." In reality, just the opposite is true. Goldman Sachs, UBS, Citi, etc. will pay zero while pensions and savings are taxed to the max.